When you are buying homeowners insurance for your new property, it is important to understand your options so that you can select the best plan for your personal goals. The homeowner’s policy that is best for your goals will depend on the situation and your budget.
Generally, a HO-1 or a HO-2 policy is considered a basic plan. Some mortgage providers may require that you purchase a HO-2 plan, which covers against the most common threats to a property, but it may not always provide the coverage that you want or need.
Basic plans are usually very limited. As a result, you may want to purchase more comprehensive plans that will also protect your personal belongings.
A HO-3 policy is designed to protect against the most common situations and it will also pay for the replacement or repairs of your personal belongings if the situation is covered under the plan. Usually, the policy will cover all situations unless they are specifically excluded.
If you want to take the protection further, then a HO-5 policy may be a good choice. Since the policy is not available through every insurance provider, it may be useful to purchase a HO-3 plan and then add to the coverage for your personal belongings if it is necessary.
Specialized coverage is any plan that protects a condo, older house or other specialized types of property. Since the needs may differ from the needs of a house, the coverage is adjusted to avoid any complications.
There are a variety of policies that are available to protect your house, but you should always compare the options to avoid any complications or high expenses. To learn more about protecting your property, contact us to talk to an agent today.