What Are Some Different Types of Home Insurance Policies?


Types of home insurance policies include the limited coverage policy, which is a bare-bones policy that is fading in most state markets; the basic coverage plan, which protects from a broad range of disasters; and the special plan, which is the most comprehensive and popular plan for homeowners, according to Insurance Information Institute. Different plans offer coverage for anyone who rents a home or owns a condo.

The basic coverage plan, also known as HO-2, provides coverage from a large list of perils, explains National Storm Damage Center. The policy covers claimants for damages due to fire, vandalism and theft; snow, hail and lightning; vehicles; collapse; pipe freezing and several other conditions. The special plan, known as HO-3, or the "All Risk" policy, distinguishes itself from HO-2 by covering all damage with exception to a small list of perils. Ordinance of law, governmental action, earth movement, war and military actions, and nuclear hazard don't receive coverage under the HO-3 policy. Other perils that the HO-3 policy doesn't cover include power failure, water and flooding, inherent defects and vermin.

Renters insurance policies for non-homeowners cover possessions and any parts of the home or apartment that the renter owns. A similar insurance policy covers owners of condos or co-ops from the same list of damages, reports Insurance Information Institute.

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