Homeowners insurance policies generally cover destruction and damage to the interior and exterior of a home, the loss or theft of possessions, and personal liability for harm to others. Multi-family homeowners generally purchase an HO-3 with an endorsement to cover the risks associated with tenants living in their homes. Other types of homeowners policies include HO2, which offers more limited coverage, HO-1, a basic policy that isn't widely available, and HO-8, designed for older homes. There is also a version of the HO-2 designed for mobile homes.
The HO4 policy was created specifically for those who rent the house in which they live. Covers the policyholder's belongings against the 16 hazards. It also provides personal liability coverage for damages that the policyholder or their dependents may cause to third parties. The HO-6 policy was designed for owners of condominiums and cooperative units.
Provides coverage for the belongings and structural parts of the condominium or cooperative owned by the policyholder. Protects against all 16 hazards and provides personal liability coverage. Both cover additional living expenses and coverage levels. How coverage is applied: Homeowner policies pay for damage caused by the hazards listed in the terms of the contract, up to the policy limit.
A hazard is a cause of loss, such as fire or theft. Coverage can cover all hazards, except those explicitly excluded, or only those specifically mentioned in the policy. Homeowner policies typically include fire, lightning and extended coverage. Extended coverage includes coverage for hazards such as windstorms, hail, explosions, riots, civil commotion, airplanes, vehicles, smoke, vandalism, malicious mischief, theft and broken glass.
Includes national and state premium and exposure information for non-commercial home fire insurance and package insurance policies for homeowners. To insure these items at their full value, individuals can purchase a special personal property endorsement or a float and insure the item at its appraised value. Every insurance policy is different, but there are other coverages that homeowners insurance often offers. Most companies cover 50 to 70 percent of the insurance amount for a home structure.
Home structure coverage This part of the policy pays for the repair or reconstruction of a home if it is damaged or destroyed by a fire, hurricane, hail, lightning, or other disaster mentioned in the policy. The NAIC provides experience, data, and analysis for insurance commissioners to effectively regulate the insurance industry and protect consumers. This includes best practices for the design and implementation of the web-based Consumer Premium Comparison Guide for homeowners insurance and the consumer buying tool for homeowners insurance. The NAIC produces the Homeowners Insurance Report, which provides data on market distribution and the average cost by form of policy and amount of insurance.
The best practices document provides guidelines that state insurance departments should use when creating online insurance policy resources for consumers. Flood coverage is provided by the federal government's National Flood Insurance Program, although it is purchased through an insurance agent. If you have high-value items, check with your insurer to make sure they're sufficiently insured. Homeowners insurance sometimes also offers no-fault medical coverage, which means that if a friend or neighbor is injured in your home, you can submit medical bills to your insurance company.
Additional living expenses This pays for the additional costs of living away from home if a home is habitable due to damage caused by a fire, storm, or other insured disaster. There are a number of additional hazards or protections that home insurance companies don't usually include in policies (we'll discuss this below). .
