Your home and belongings are valuable, and protecting them with insurance makes it possible for you to repair the damage, replace needed items, and get on with your life in the event of a disaster.
However, not all forms of insurance are created equal. Read on to get to know the primary home insurance options to ensure you’re buying the policy that best suits your needs.
“Basic Form” Coverage
“Basic Form” coverage is typically the most affordable form of home insurance; however, as the name implies, it’s also very limited. Any type of disaster or event that is not specifically listed in your coverage isn’t covered by your insurance policy.
There are two main forms of basic coverage. These are HO1 and HO2. An HO2 insurance policy offers more protection than HO1 coverage; even so, it doesn’t cover your belongings or medical bills incurred by yourself or others in the event of an accident or disaster.
“Open Peril” Policies
An open peril policy covers all types of disasters and mishaps unless these disasters and mishaps are specifically excluded from your policy. This form of coverage is in order if you want full protection for your home, grounds, and belongings.
HO3 and HO5 insurance policies are both open peril policies. HO3 is perhaps the most popular option on the market as it’s reasonably priced and offers ample coverage for your home, other structures on the property, personal liability, medical payments to third parties, and more. However, an HO3 policy isn’t comprehensive. If you want total coverage, you’ll find that an HO5 policy is your best bet. An HO5 insurance policy covers literally everything; what’s more, it will compensate damaged belongings at replacement value, which means you’re covered for the current cost of buying a replacement item no matter how much the original item cost.
Specialized Insurance Options
There are also several specialized forms of coverage you’ll want to know about. These are:
- Renter’s insurance. Renter’s insurance, or HO4 home insurance policies, are designed for those who rent rather than own their own home. Renter’s insurance covers your belongings and the cost of having to stay at a hotel if the home is damaged due to a natural disaster or some other unforeseen event. Renter’s insurance also provides personal liability coverage.
- Condo insurance, or HO6 policies, are specifically made to meet the needs of condo owners. An HO6 policy covers all your belongings plus the ceiling, walls, and floors in your condo.
- Mobile Home insurance, also known as HO7 insurance, covers mobile homes, manufactured homes, and trailers. You can buy either a basic or open perils policy.
- Older home insurance, aka HO8 policies, are designed for homes that are over 40 years old. This form of coverage is similar to HO3 insurance but takes into account that an older home may not meet the same structural standards as a relatively new home.
As an Atlanta homeowner, you’ll find that there is no one form of insurance that is inherently better than all others. Rather, you’ll need to consider your personal circumstances, budget, location of your home, the value of your personal belongings, and other factors to determine which form of insurance is right for you personally. However, bear in mind that buying a home in Atlanta and insurance isn’t a one-time decision. You’ll want to evaluate your policy every year to ensure it still meets your needs. Changes in lifestyle, home structure, and the purchase of new belongings may require you to either update your policy or buy a new one altogether.
Atlanta Insurance offers a wide range of home insurance options at various price points to suit your needs and budget. Get in touch with us today to learn more about your options or to get the coverage you need at the best possible price.