How many perils do you need home insurance to cover?

Home insurance offers 10, 15, or all-perils coverage. Homeowners have three choices in levels of coverage from their Green Valley, AZ home insurance – HO-1, HO-2, or HO-3. Which does your Arizona home need?

At the Insurance Center of Green Valley, we recommend the full coverage that an HO-3 provides. Read on to find out why.

About Named Peril Policies

HO-1 and HO-2 policies provide named peril protection. That means if the policy specifically names an event as something it covers, then the policy pays out if it happens and you file a claim.

An HO-1 policy protects ten perils:

  • Aircraft damage
  • Fire, smoke, explosion
  • Lightning
  • Riots and civil commotion
  • Theft
  • Vandalism and malicious mischief
  • Vehicle-caused damage
  • Volcanic eruptions
  • Windstorm
  • Hail.

It provides no liability coverage or personal property coverage.

An HO-2 policy covers 16 perils – the 10 in an HO-1, plus the following six:

  • Falling objects
  • Weight of snow, sleet, and/or ice
  • Flood or accidental discharge caused by HVAC or appliances
  • Accidental damage to HVAC or water heaters
  • Freezing of water lines of any household system
  • Power surge damage.

HO-2 policies also typically include liability and personal property.

HO-3: The All-Perils Policy

An HO-3 policy covers all perils, even things that no one invented yet. Unlike named peril policies, no matter what happens to a home covered by an HO-3 policy, the policy covers it. It includes coverage for liability and personal property; some policies provide for loss of use.

Choosing All-Perils Coverage

At the Insurance Center of Green Valley, we recommend that Green Valley, AZ, homeowners choose HO-3 coverage to protect their homes best. If you have a mortgage, HO-1 coverage won’t meet the criteria for homeowner’s insurance. Why not enjoy the full protection provided by an HO-3 policy? Contact our office today to start your home policy.