| Home insurance covers private homes against | | | | apartment or condo complex. In the case of condo |
| damage or destruction. While new homeowners might | | | | coverage, the part of the building owned by the |
| initially be put off by this extra monthly expense and | | | | insured and the property housed therein are insured. |
| question its worth, there is no doubt that homeowners' | | | | For renter's coverage, the insured's personal property |
| insurance is a valuable and necessary part of home | | | | is covered against theft or damage. In both cases, the |
| ownership. Because mortgage lenders always require | | | | policy also typically offers liability coverage, sometimes |
| the purchase of home insurance as a condition of | | | | extending as far as 150 feet away from the covered |
| providing a home loan, it's easy for new homeowners | | | | unit. The specifics of HO-4 and HO-6 coverage vary |
| to have an insurance policy without really | | | | widely depending on the specific policy and the existing |
| understanding its provisions; however, given its | | | | policy in place for the complex as a whole. |
| importance in the event of damage to the home, it's | | | | The remaining policy options are essentially variations |
| well worth taking a few minutes to learn the basics of | | | | on the three more common forms, with the exception |
| homeowner coverage. It should be noted that this | | | | of HO-8, which allows owners of older homes that |
| information focuses on insurance coverage in the | | | | would have a higher replacement cost than the |
| United States. | | | | market value, to insure them at the more affordable |
| There are seven standard home insurance packages; | | | | market value rate. |
| these are designated HO-1, HO-2, HO-3, HO-4, HO-5, | | | | In addition to the standard policy packages listed |
| HO-6, and HO-8. Of these, the most commonly | | | | above, homeowners in some areas might qualify for |
| purchased policy is HO-3. It covers the home, structure, | | | | supplemental insurance, such as flood or hurricane |
| and contents in the case of damage or destruction. | | | | insurance. These add-ons are called riders and add to |
| Equally important, it usually offers liability coverage for | | | | the monthly cost of the insurance, but they can be |
| visitors who are injured or have an accident while on | | | | worthwhile investments in high-risk areas. |
| the property. The specifics of HO-3 policies vary | | | | One important task every homeowner should |
| widely and will be spelled out in very specific detail in | | | | complete is a home inventory. This list of furnishings |
| the individual policy. This type of coverage is often | | | | and belongings is essential when filling out claims for |
| called 'all-risk' insurance. | | | | theft or loss due to fire or other destruction. A photo |
| After HO-3, the most commonly purchased forms of | | | | or video log of major furnishings is also helpful, and |
| home insurance are HO-4, which covers renters, and | | | | recording product serial numbers whenever possible is |
| HO-6, designed for condominium owners. | | | | also important. |
| In each case, the policy is written to cover the areas | | | | Getting a good home insurance policy should be at the |
| not covered by blanket policies written for the | | | | top of every homeowners priority list. |