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What Does a Homeowners Insurance Policy Cover?

Homeowners Insurance Policy Coverage 

Homeowners insurance provides protection against damages to your home caused by theft, fires, and other natural disasters as well as from liability in the event that someone is hurt in your home. Those who take out a mortgage to purchase a home are almost always required by a lender to purchase homeowners insurance. While it is not mandatory for those without a mortgage, homeowners insurance is a very valuable investment. Learn about the different types of policies with Nickerson!

Types of Policies

The following homeowners insurance policies we will be discussing are a HO-1, HO-2, HO-3, HO-4, HO-5, HO-6, HO-7, and HO-8. 


The most basic form of homeowners insurance is known as a HO-1. The perils that are covered under a HO-1 are as follows: fire or smoke, an explosion, lightning, windstorms, hail, volcanic eruption, vandalism, theft, damage caused by a vehicle, damage caused by an aircraft, civil commotion, and riots. Unfortunately, this type of homeowners insurance does not include coverage for personal belongings and liability, which is why it’s not typically recommended for someone looking for comprehensive coverage. 


A HO-2 is commonly referred to as the broad form of homeowners insurance. Anything not mentioned on the list of perils is excluded from coverage. This type of policy covers all of the perils mentioned in a HO-1, as well as damages that are caused by the freezing of HVAC systems, falling objects, cracking of pipes, and more. 


Next, we have a HO-3, or the special form of homeowners insurance. This policy is commonly purchased by homeowners because of its affordability and it also offers more coverage, as it is not considered a “named perils” policy. All of the perils named in a HO-2 are included in a HO-3. 


A HO-4 is known as the renter’s insurance policy. Renter’s insurance protects your personal possessions in the event of a disaster or theft. This type of insurance also allows you to protect yourself in the case of a liability lawsuit. If you are renting, getting insured is essential. 


A HO-5 is the comprehensive form, meaning it offers more protection than any of the other policies we’ve previously discussed. It is similar to the special form as it is not a “named perils” policy, however it is a bit more costly due to its higher level of coverage. 


Individuals who are owners of condominiums will purchase a HO-6 policy. This type of policy protects personal belongings as well as liability. 


People who own motor homes will purchase a HO-7 policy, which is very similar to a HO-3. 


Lastly, an HO-8 policy is for people who have older homes and the coverage is similar to a HO-3. Registered landmarks as well as historic homes use this type of insurance policy. 

Our Professional and Reliable Homeowners Insurance Coverage

When you are looking for a homeowners insurance policy, look no further than Nickerson Insurance. We understand that your home is one of your most important assets and we want to protect you from financial losses and liability by ensuring that you have the coverage you need. Contact us today to receive a hassle-free insurance quote or to schedule an appointment!

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