The first thing to do after purchasing a home is to find a good home Insurance cover policy. When applying for a mortgage, a policy is often suggested by the mortgage lender; however, this insurance may not be comprehensive or suitable for your needs. It isn’t necessary to take an insurance policy from the mortgage lender since there are many policies to choose from outside that lender. When shopping around for a home cover insurance many people discover that there are several types of insurance, which can be confusing. Below are the different types and what they cover and exclude.
Very basic cover
Basic Home Insurance cover or HO-1 only covers damage to the home from one of these ten causes:
- Volcanic eruption
- Vandalism
- Aircraft damage
- Civil commotion or rights
- Vehicles
- Smoke
- Explosion
- Wind or hail damage
- Fire or lightening damage
- Theft (usually covered up to $1000)
- A basic home Insurance doesn’t cover personal liability, so if someone were injured on a property that had basic insurance, the homeowner is liable for any lawsuit filed against them.
Broad cover
Broad cover also known as HO-2 covers the house and structures, such as a fence or garage. This cover only insures against the following perils:
- The 10 covered by basic cover
- Falling objects
- Freezing
- Electrical current generated damage
- Accidental budging, tearing, burning or cracking
- Weight of sleet, snow or ice
Unlike basic home Insurance, broad cover does offer homeowners personal liability coverage.
Special form policy
The special form policy insurance insures a homeowner’s structure from any peril listed above as well as accidental loss or damage. This policy does have special exclusions on damage that it won’t cover. This policy offers homeowners personal liability coverage. An example of exclusions that are usually listed in a special form policy are:
- Earthquakes (unless added as an endorsement)
- Water damage
- War
- Intentional loss
- Collapse
Open perils policy
This policy offers cover for a home owners dwelling and its contents. This policy only lists perils that are excluded from cover. This means if a home owner suffers loss or damage from anything that is not listed in the exclusions, it is covered. This is the most extensive coverage offered as a homeowner’s insurance.
Talking with a Tabitha E Walker Insurance Agency specialist is the best way to decide which Stafford VA homeowners insurance cover is right for you. Give us a call at (540) 657-5633 to get a free home owners insurance quote.