Basic Homeowners Insurance

Homeowner's insurance policies are classified as HO-1, HO-2, HO-3 among other types of coverage. Which one do you need?

• HO-1: This homeowner's insurance policy is very basic. The good news is it's very inexpensive. The bad news is you get what you pay for. Very few perils are covered under this homeowner's insurance policy. For instance an HO-1 homeowner's insurance policy won't cover plumbing mishaps, damage from snow or falling objects. The homeowner's insurance coverage of an HO-1 policy is not available in most states.
• HO-2: This is a basic homeowner's insurance policy that covers 16 common perils like plumbing and electrical damage. If you have a mobile home, you need coverage just like any other traditional homeowner. There are HO-2 homeowner's insurance policies specifically written for mobile homeowners.
• HO-3: This is the most popular homeowner's insurance policy. It is a common choice among consumers because it provides the most comprehensive coverage. Your homeowners HO-3 insurance will cover all perils except specific exclusions. These exclusions are usually fires, floods, wars and earthquakes.