Types of Homeowners Insurance Policies

There are many different types of homeowners insurance policies. The type you choose depends on the type of dwelling you live in, your home's location and how much coverage you would like. Most states have these types of homeowners insurance policies.

• HO-1 policy: This homeowners insurance policy covers 10 specified disasters. It is very limited and considered a bare bones policy. Because of the limited financial protection it provides, many states do not offer this type of insurance policy
• HO-2 policy: A homeowners insurance policy with basic coverage of 16 types of disasters. It is also available for mobile homes.
• HO-3 policy: Coverage of all types of disasters except those specifically excluded from the contract.

Most homeowners insurance policies exclude damage from flood, earthquake, war and nuclear events. You can get a separate flood or earthquake insurance policy in addition to your homeowners insurance.

Sources

1. Are there different types of policies? Retrieved May 12, 2008, from http://www.iii.org/individuals/homei/hbasics/arethere/