Generally, your home is considered as one of your most important assets. Since you have invested a lot in it, it’s just appropriate for you to have it insured. Accidents happen and unexpected things occur leaving you vulnerable. To be on the safe side, it’s important to have your home covered so that you will be protected in case disaster strikes. This way, you will have a means to cover the cost of rebuilding or repair.
Listed below are the frequently used standard policies of R.I. USA for home insurance:
- Basic Coverage (HO-1). Is a type of Home Insurance that covers home protection, structural repairs and personal properties caused by perils and disasters, like lightning, fire, hail, wind, explosion, civil unrest or riot, aircraft and vehicular crash, smoke, volcanic eruptions, vandalism, theft, any form of malicious mischief and other self-damaging incidents (e.g., building parts falling causing damage to the home).
- Broad Coverage (HO-2). This type of insurance includes disaster incidents of Basic Coverage, and covers a few more disasters, like falling objects, snow, freezing of specific properties or accidental water discharge for air-conditioning, heating, plumbing and/or appliance damage, and damage resulting from electrical surge.
- Special Form (HO-3). The Special Form coverage is the most preferred Home Insurance policy among homeowners. It protects unattached structures and your home from damage or loss resulting from all types of peril, except for the ones which are specifically excluded. The perils not covered by Special Form coverage are nuclear accident, flood, war and earthquake. Make it a point to read your chosen policy carefully to be aware of the exclusions. You can cover exclusions by purchasing additional endorsements.
- Tenant’s or Renter’s Policy (HO-4). This type of policy insures the contents of your household and your personal possessions against the risks listed in the Broad Coverage policy. However, Tenant’s or Renter’s Policy doesn’t include the building in its coverage. It also tenders coverage for additional living expenses, liability protection and medical payments. Since tenants or renters don’t own the building they are occupying, there’s no need for them to have it insured.
- Condominium Coverage (HO-6). Condominium Coverage is quite similar to Tenant’s or Renter’s Policy. It offers a broad range of liability protection and coverage for an insured condominium unit. This type of coverage is intended for owners of condominium units who want to insure items which are not covered by their association’s insurance policy. However, Condominium Coverage doesn’t protect the condominium structure; this is insured through the condominium association’s Special Condominium insurance policy.
- Older Home Policy (HO-8). This type of insurance policy is offered to owners of older homes which has historic value. Disaster coverage for Older Home Policy only includes cash values or repairs of insured items. The policy doesn’t involve costs for replacement or rebuilding considering that some portions of the home that bear historic significance could result in higher costs when replaced or rebuilt if compared to their market value.
The policies mentioned above can be subject to modifications. For example, there are special insurance which are applicable for mobile home coverage. Aside from Tenant’s or Renter’s Policy which covers the property of the tenants inside the building, there’s also the Landlord Insurance which covers the residence. However, Landlord Insurance doesn’t include the property in the coverage.