There are several types of homeowners insurance that you can purchase. Policies can vary in terms of the coverage, so it’s definitely important to know the difference between them. Below we’ve listed some of the most common types for homeowners:
HO-3 is a type of insurance that is most common among homebuyers. Lenders typically require at least this level of coverage when providing you a mortgage. The policy typically covers damages from:
HO-5 is the most extensive homeowner coverage that pays for all causes except those the policy excludes by name. It’s typically available only for well-maintained homes in low-risk areas, and not all insurers offer it.
HO-1 AND HO-2 is a less popular homeowner insurance among buyers which pays out only for damages caused by issues listed in the policy.
Policies typically exclude damages from other causes. Below you’ll see some of the reasons why your home insurance won’t be applicable:
That being said, you can buy separate coverage for some of these risks. We recommend you talk to your insurer to add additional coverage (endorsements) to your policy. These will usually cost extra but provide you with more protection.