A Home Insurance Coverage refers to the different types of coverages or protections available under a Home Insurance Policy.
Home Insurance is also known as Hazard Insurance or Homeowner's Insurance (HOI). It is a form of Property Insurance which covers private houses.
The Insurance Services Office or ISO (established in 1971) introduced seven standard Householder's Policy for the United States.
The Home Insurance Policies in the United States (and subsequent Home Insurance Coverages) can be categorized into the following types:
• HO-1: This is a Limited Policy which provides different levels of coverage but they are applicable only to the items, which have been distinctly mentioned in the Home Insurance Policy. These coverages may be utilized for covering a precious item in the house, for example a diamond jewelry.
• HO-2: The HO-2 has the same characteristics as HO-1. It is also a Limited Policy, which covers particular components of a house for the damages caused. This is generally known as a “Named Perils Policy” because the events going to be covered are enumerated in the policy. Again, these events should be clearly mentioned in the policy.
• HO-3: Usually, this is the most basic policy for a householder. It is planned to cover every element or component of the house, contents, and construction and also any liability that might occur from day-to-day usage, as well as the visitants who might be involved in an accident or become injured on the building premises. The liability limits and events covered should be clearly outlined in the policy in order to assure appropriate coverage. Generally, the coverage is known as “All Risk” or “Open Perils” Policy.
• HO-4: It is usually termed as Renter's Coverage or Renter's Insurance. The characteristics of HO-4 is the same as HO-6. The coverage of this policy applies to those elements of the house and the contents, which are not distinctly mentioned in the main policy drafted for the building complex. This policy also covers liabilities originating from accidents and deliberate injuries for visitors and pedestrians within the range of 150 feet from the house. Usual events covered include riots, lightning, aircraft explosion, hooliganism, smoke, stealing, hail, violent storm, dropping objects, volcanic eruption, snowfall etc.
• HO-5: This policy has the same characteristics as HO-3. The coverage areas include a house (not an apartment or condominium), the householder, and his belongings, and also any liability that may originate from guests or pedestrians. This policy is slightly different in that the coverage is broader in terms of accidents and losses compared to HO-3.
• HO-6: It is a type of Additional Householder's Insurance and it is also termed as a Condominium Coverage. It is planned particularly for proprietors of condominium. This policy has coverage for the portion of the house possessed by the insured person and for the belongings present in the house of the insured person.
• HO-8: Generally, it is known as “Older Home” Insurance. It helps householders with greater replacement costs compared to market value to insure them at a lesser market value rate.
