Well for one unlike auto insurance, homeowners insurance is not required by the state you live in. However, if you are buying a home, chances are your mortgage lender has requested that you secure a policy in terms of your loan. Even if you do not have a mortgage, look into homeowners insurance; you do not want to watch your investment go up in smoke with no way to replace it. So what does homeowners insurance cover?
One of the most common misunderstandings about homeowners insurance is that it covers anything that goes wrong in your house. It is important to remember that insurance and home warranties are two very different products. For example, a home warranty may cover your air conditioner malfunctioning, while your insurance policy may cover it if it stops working due to lightning strike or theft.
When it comes to homeowners insurance, there are basic coverages that all companies will cover. Often the product name may be different based on the company, what they provide coverage for are the same.
An HO-1 is the most basic homeowners coverage you can get it. An HO-1 will cover the structure and depending on the policy your stuff inside from the following perils or cause of loss:
- Fire or smoke
- Hail and windstorms
- Damage from vehicles
- Damage from aircraft
- Riots and civil commotion
- Volcanic eruption
A step above the HO-1, the HO-2 will protect your home and belongings from these additional perils:
- Accidental discharge or overflow of water or steam
- The weight of ice, sleet, or snow
- Sudden and accidental splitting apart, burning, cracking, or bulging of pipes and other household systems
- Falling objects
- Any damage that is sudden and accidental from an artificially generated electrical current
- Freezing of housing systems like AC or heating
Then the next level would be a more robust policy such as the HO-3 (this is the most common type of coverage), or the H0-5 will provide additional coverage plus what is listed above.
If you are buying a home in Green Valley, AZ, let the helpful agents at Insurance Center of Green Valley find you the right homeowners policy for your needs.