According to the Insurance Information Institute, you can get away with living in a home without buying home insurance for it. There aren’t any laws on the books that say you have to purchase a home insurance policy.
But if you have a mortgage on your home, your lender will typically tell you that you have to invest in one of the types of home insurance. You might also want to think about looking for the best home insurance in Ontario even if you aren’t asked to get it. As It’ll provide you and your home with the proper protection.
So, which type of home insurance would be your best option? We’re going to run through some of the different types of insurance for a home to help you decide.
Here are several types of insurance you can secure for a home if you would like.
HO-1
Of all the different types of home insurance, HO-1 insurance is the most limited of the bunch. As a result, it shouldn’t come as a surprise to hear that HO-1 insurance isn’t offered by most insurance companies anymore.
HO-1 insurance is only designed to cover damage done to a home by the most basic perils, including fire, hail, wind, vehicles, theft, and a few more. It’s not going to get you very far if your home is ever damaged.
Ideally, you should try to obtain one of the better types of home insurance on this list. But if you’re looking for a cheap insurance policy that will do the bare minimum, this will be your preferred option.
HO-2
An HO-2 insurance policy is a little similar to an HO-1 policy, though there are some key differences that make this one a better choice. It’s going to protect your home and everything in it against all the same perils that an HO-1 insurance policy does, while also protecting it from:
- Freezing
- The weight of ice, snow, etc.
- Accidental explosions involving water heaters, heating and cooling equipment, etc.
- Power surges
An HO-2 insurance policy still isn’t quite as comprehensive as you’ll want a policy to be. But it’s going to offer more advanced coverage than an HO-1 policy, which is why so many people choose it these days when they’re on a budget.
HO-3
HO-3 insurance policies have turned into the most popular types of home insurance, and it’s easy to see why. They’re a whole lot more comprehensive than HO-1 and HO-2 policies.
An HO-3 policy will set you up with coverage for a whole host of perils. There are actually so many perils on the list that it’s easier to look at what won’t be covered versus what will.
Some of the perils that aren’t going to fall under an HO-3 policy will include:
- Earthquake
- Nuclear hazard
- Government action
- Smog
- War
It’s also worth noting that flood damage isn’t going to be covered by this type of home insurance. You will need to read more on Betterflood.com about how you can get coverage for floods.
HO-5
If you live in a home with a lot of expensive items like jewelry and fur coats in it, you won’t be able to rely on any old home insurance policy to protect them. You’ll need to look into getting an HO-5 policy instead.
An HO-5 policy has a lot of the same characteristics as an HO-3 policy. But generally speaking, it’s for higher-income families that will have a lot of valuables tucked away inside their homes.
Not surprisingly, HO-5 insurance policies are some of the most costly types of home insurance around. But they’ll be well worth it for those who need all the coverage they can offer.
HO-7
Do you live in a mobile home? You won’t be able to get one of the other types of home insurance listed here. If you attempt to do it, your insurance company isn’t going to agree to set you up with the coverage you want.
You’ll need to go with an HO-7 insurance policy that is specifically for those who live in mobile homes. This type of home insurance is also ideal for those with:
- Sectional homes
- Modular homes
- RVs
Those who live in these types of homes will face different challenges than those in traditional single-family homes. It’s why they need to secure the right type of home insurance from the start.
HO-8
If you live in an older home that needs to be updated, you might not qualify for any of the other types of home insurance we’ve talked about. It might leave you feeling stressed out and wondering what you should do.
Know that you might be able to qualify for an HO-8 home insurance policy. This type of policy will feature an insurance company listing the specific perils they’ll cover.
Because of the condition of an older home, an insurance company might not be willing to cover certain perils. This is a riskier type of home insurance, but it might be a good option for some homeowners.
Consider Each of These Types of Home Insurance
As you can clearly see, there will be many options that await you when you need home insurance. Your job will be to analyze the different types of home insurance and pick out the right one.
You’ll sleep better at night knowing you have the best home insurance policy in place. It’ll provide your home with as much protection as it needs.
Read more informative articles on home insurance by poking around on the rest of our blog.
