If you own a home more than likely you have, or will be getting, home insurance. Most lenders require the homeowner to get coverage before they agree to the loan. As with any insurance there are different policies designed to give different types of coverage. When choosing your insurance you will want to know the pros and cons of each policy.
The policy names are simple to remember HO-1, HO-2, HO-3, and so on. HO-1 is, of course, the most basic policy. Coverage usually includes fire, theft, and some property owner liability. HO-2 is usually a bit more money but it has more to offer. The coverage generally includes the three mentioned above as well as damage caused from snow, ice, and broken pipes and water heaters. You may also be covered in the event of wind or hail damage, explosion, civil riots, etc. Moving onto HO-3 you will get even more coverage more added to the policy. This usually covers everything, with the exception of certain disasters such as floods, earthquakes, etc. If you live in an area prone to these disasters you will want to make sure you have that coverage added to your policy.
These three are the most common types of insurance, but there are also types meant to cover rental properties, condominiums, and even old homes that have been built with different materials. Of course, you will find that there are different terms and conditions for each policy. Regardless of the terms, however, these are the standard types of coverage whether you’re buying New York home insurance or whether you’re looking for insurance in Montana.