Protect your Home with Home Insurance

Homeownership is an ideal component of the American dream for many people. For many Americans it is their largest investment, their most prized possession. It is important that you take measures to protect what may be your largest economic investment. Sometimes, it is difficult to protect against all unforeseeable risks to your real estate property. Home insurance provides homeowners protection against unforeseen events and helps protect their finances. Homeowners insurance or home insurance offers real home protection through the homeowner insurance policy and gives you peace of mind.

Generally, most home insurance provides the following coverage 1) structure of the home; 2) other related structures including, driveways, sidewalks, garages, and fences, 3) personal belongings, 4) liability protection 5) loss of use or additional living expenses (ALE), such as hotel costs and restaurant meals that results from the damage. The main areas where home insurance policies differ are in the perils they cover and their exclusions. These are various components of standard and optional choices among the following policies:

1) HO-1

• Basic homeowners policy
• Offers home protection against 11 different perils

2) HO-2

• More expansive than the standard homeowners policy
• Protects your home from 17 different perils
• Policy premiums are about 5 to 10 percent more than a HO-1 policy

3) HO-3

• Unique homeowners insurance policy
• Offers protection against all perils except perils not included in your policy
• Premiums are approximately 10 to 15 percent higher than a HO-1 policy

4) HO-4

• Renters policy, covers renters
• Home protection against 17 different perils, includes liability
• Doesn’t insure the home real estate itself

5) HO-5

• All inclusive home insurance policy
• Doesn’t include damage from earthquake, floods, and wars

6) HO-6

• Policy coverage for co-ops or condominiums
• Covers personal property, liability, and specific unit improvements
• Usually covers unit structure under the association’s insurance

7) HO-8

• Insurance policy for older houses
• Offers home protection against 11 different perils that includes repair costs or actual cash value not replacement costs
• Suited for older homes that have market values less than its rebuilding costs

A homeowner insurance policy places perils into two categories: open perils and named perils. Perils express covered causes of loss.

Open Perils: Accidental overflow of water, Weight of ice/snow/sleet, Falling objects, Bulging, Sudden cracking, Burning, Freezing, etc

Named Perils: Lightening, Smoke, Aircraft, Theft, Vehicles, Fire, Hail, etc

Before you begin your homeowners insurance application process, make sure you are prepared to provide extensive information to the home insurance company. It is important to research the right home insurance company and policy before making a decision to protect one of your largest investments.