Andalusia, Alabama
300 E Three Notch St
Andalusia, AL 36420
(334) 222-1460

4 Different Types of Homeowners Insurance October 26, 2020

Andalusia, Covington
4 Different Types of Homeowners Insurance, Andalusia, Alabama

Your home insurance agent is committed to finding the best policy that fits your needs. You might hear them mention different policies, featuring their technical titles like HO-3 and HO-5. Here’s more information about what these terms mean and what type of incidents they cover.

A Guide to the Different Types of Home Insurance

1. HO-1

HO-1 is the most basic type of home insurance policy, as it covers the least number of “perils,” or incidents that might result in a claim. It typically covers about 10 different perils, including events like fire, lightning, theft, windstorms, hail, vehicles, and smoke. It may not cover belongings inside your home in the case of theft or damage. Many insurance companies no longer offer these policies since they’re quite restrictive on what they cover, and it’s often not the best insurance value.

2. HO-3

home insuranceThis home insurance offers a broader range of coverage than HO-1 policies and is sometimes called an extended policy. In addition to the items covered in HO-1 insurance, HO-3 home insurance also covers most perils. Some perils that might be left off include earthquakes, landslides, floods, or nuclear accidents. This type of policy will cover the belongings in your home up to the limits outlined in the policy.

3. HO-5

HO-5 coverage is an upgrade from HO-3 coverage, and it covers more perils. It’s called a comprehensive form, which means that it will cover everything except for items that are specifically excluded. Some commonly excluded items include mold, war, rust, animals, pollution, and water damage. Check with your home insurance agent to see what is covered in your HO-5 plan.

4. HO-8

This type of insurance policy is used for older or historic homes, and it covers around 10 perils. What’s unique about HO-8 forms of coverage is that the damages paid out to homeowners are in the actual cash value, meaning that the insurance company will pay for the cost of the damages minus the depreciation value.

The actual cash value will be much lower than the replacement cost, but the trade-off is that the policy is more affordable. Homes generally need to be at least 40 years old to qualify for this policy form. 

 

If you’re ready to choose between home insurance policies, call Tim Bryan Insurance, located in Andalusia, AL. Tim Bryan is a State Farm® agent who has the knowledge and expertise to help you explore your insurance options, and he works with health, life, auto, property, and homeowners insurance. Visit his website or call (334) 222-1460 to schedule an appointment at a time that fits your schedule.

Other Announcements, Events and Deals from Tim Bryan-State Farm Insurance Agent
Should You Reevaluate Your Car Insurance Policy?, Andalusia, Alabama
As an essential expense for every driver, paying for car insurance may be something you don’t think a lot about. However, it’s important to note that the amount you should pay—and th...read more
How to File an Auto Insurance Claim , Andalusia, Alabama
If your vehicle suffers damage in a collision or an act of vandalism, you might want to file an auto insurance claim to cover the loss. Knowing what to do and what to expect makes th...read more
Will Working for a Rideshare Company Impact Your Auto Insurance?, Andalusia, Alabama
Many young workers are participating in the ‘gig economy,’ working part-time as personal shoppers, delivery personnel, and rideshare drivers. If you’re considering boosting your inco...read more
A Guide to Fences & Homeowners Insurance, Andalusia, Alabama
Your home insurance policy covers many potential sources of damage. However, did you know that it can also cover your fence? Below is a brief guide to how fencing can affec...read more