HOMEOWNER INSURANCE GUIDE

WHAT IS HOMEOWNERS INSURANCE?
Homeowners insurance is made up of coverages that may help pay to repair or replace your home and belongings if they are damaged by certain perils, such as fire or theft. It may also help cover costs if you accidentally damage another person's property or if a visitor is injured at your home.

Standard homeowners insurance protections
A standard homeowners insurance policy insures your home's structure (house,) and your belongings in the event of a destructive event, such as a fire.

In addition, homeowners insurance policies are generally "package policies." This means that the coverage includes not only damage to your property, but also your liability—that is, legal responsibility—for any injuries and property damage to others caused by you or members of your family (including your household pets).


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Insurance for condominiums and co-op- apartments generally covers your belongings, liability and certain parts of the interior structure as defined in the by-laws or proprietary lease.

Renters insurance provides similar property and liability protections to those who don't own their home.

All forms of home insurance also provide additional living expenses (ALE) coverage for the extra costs of living away from home if it is uninhabitable due to damage from an insured disaster.

WHAT DOES HOMEOWNERS INSURANCE COVER?
Homeowners insurance typically helps cover:

Your dwelling
Other structures on your property
Personal property
Liability
You may also be able to purchase additional coverages for greater protection. Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance. You may be able to purchase separate insurance policies to help protect your home and belongings against those types of risks.

Optional home insurance coverages:
Flood insurance protects your house and belongings from flood-related damages. It is a separate policy with its own deductible. If you live in a state or area that is prone to flooding, this coverage is a good idea and may even be required depending on your location.

Earthquake insurance covers your home in the event of damages caused by an earthquake. This policy also has its own deductible.

Replacement cost plus is an extra level of protection that can provide additional coverage to rebuild your home after a total loss. If you have owned your property for an extended period of time and are concerned about depreciation, taking out additional replacement cost coverage may be a good idea.

Medical payments coverage may provide payment for a medical expense resulting from an accident on the customer’s property. This coverage is intended for the immediate medical treatment of guests on the customers’ premises, without determining fault.

Ordinance or law insurance kicks in if you need to rebuild your house to fit current building codes after a covered loss. It can be a smart choice if you have an older home.

Valuables Plus® is a unique Nationwide coverage that provides an extra level of protection for your high-value items such as jewelry, antiques and fine art in the event of a covered incident.

Brand New Belongings® is an optional, add-on endorsement that can provide funds to repair or replace certain belongings in the aftermath of a covered loss, without a deduction for deterioration and depreciation.

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Types of homeowners insurance policies

HO-1
A limited insurance policy that only covers 10 perils compared to the 16 perils covered under equally affordable standard policies. It doesn't include personal liabiltiy for those injured on your property and your belongings aren't automatically covered. Many mortgage companies don't think HO-1 policies provide sufficient coverage. For these reasons, it isn't widely available or very commonly used.

HO-2 — broad form
A broad form policy is a more common type of homeowners coverage. It covers all the perils in an HO-1 policy, plus:

Falling objects
Weight of ice, snow, or sleet
Freezing of household systems like AC or heating
Sudden and accidental tearing apart, cracking, burning, or bulging of pipes and other household systems
Accidental discharge or overflow of water or steam
Sudden and accidental damage from artificially generated electrical current
The HO-2 typically covers not only your home's structure, but your belongings and sometimes even your personal liability as well. It's important to note, though, that because the HO-2 is a "named peril" policy, any damage caused by events other than those listed on your policy will generally be excluded from coverage.


HO-3: The HO-3 is the most common policy form because of its broad range of coverage. It is an extended or special homeowners insurance policy form that protects against all 16 of the most common perils and almost any other peril, except those specifically excluded (such as earthquake, flood, landslide or mudslide, nuclear accident and sinkholes). However, HO-3 policies only cover personal belongings in the home against the same perils covered by an HO-2 policy form.

HO-4
A renters insurance policy that covers your belongings against all 16 perils. It only covers your personal items and not the building because the landlord is responsible for insuring the dwelling. Most HO-4 policies also provide liability insurance in case someone is injured in your home and provide money for living expenses should you need to stay elsewhere temporarily while the rental property is being repaired or renovated.


HO-5 — comprehensive form
A comprehensive form policy is comprehensive, indeed, in that it often covers more perils than other types of policies. Just like a HO-3 form, a HO-5 is an open-peril policy form that can financially safeguard you against all perils unless your policy specifically excludes them in writing.

The following are typically excluded from coverage under a HO-5 policy:

Earth movement (like an earthquake, landslide, or mudslide)
Floods
Water damage
Damage from or infestation of birds, vermin, rodents, and insects
Neglect, deterioration, and general wear-and-tear
Settling, shrinking, bulging, or expanding of your home's foundation
Your pets and other animals
Mold, fungus, and rot
Intentional loss
War, government action, and nuclear hazard
Ordinance or law
Smog, rust, and corrosion
It's important to note that you may still have coverage for some of these events if they happen suddenly and unexpectedly — that's why we always advise that you speak with your insurer about your particular circumstances after a loss.

HO-6: HO-6 policies are designed as insurance for condo owners and co-op tenants. Every condo or co-op association has different insurance policies and levels of protection. As a condo owner or co-op tenant, you have the right to review the insurance policy the association has in place. Make sure you examine the policy before purchasing insurance for your unit – you don’t want to purchase too little coverage or have coverages that overlap.
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Condos are essentially treated similarly to a single home when it comes to homeowners insurance, since the policyholder owns his or her unit. They need an HO-6 policy to cover the part of the structure they own, their belongings inside, liability and additional living expenses should the unit become uninhabitable due to a covered peril. Sometimes a condo association is only responsible for common areas of the building, landscaping and the bare walls, floor and ceiling. An HO-6 policy is especially important in that circumstance.



HO-7
Similar to an HO-3, an HO-7 is designed specifically to cover mobile or manufactured homes.   

HO-8
An insurance policy designed for older homes. The coverage details of a HO-8 are similar to an HO-3, but with special adjustments to better suit older homes. This type of policy is usually also used for historic homes and registered landmark dwellings. According to III, older homes are sometimes not eligible for replacement cost insurance, so the reimbursement for damages to possessions or the property would be based on the replacement cost minus depreciation.



This though is not a complete list.

Home Insurance has tons of exclusions, such as; Flood, Earthquake, Landslide, War, Riot, Nuclear and coverages are often different with personal property vs structures.

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