Did you know that winter storms rank third in calamitous homeowners’ losses? The storms cause significant property damage, such as the collapse of roofs. In such a case, what better to protect your Rochester property from the elements than getting home insurance coverage?
While so many Rochester residents are aware of the term ‘home insurance,’ about 47% are unsure of their home insurance coverage. For this reason, we’ve rounded up the different types of insurance your Rochester home needs. Let’s dig into it!
1. HO-1 Insurance Policy
An HO-1 policy is a basic home insurance policy providing bare-bones coverage. The arrangement will only cover your house structure at the actual cash value, which means calculating compensation by deducting depreciation from the actual house value. However, the policy doesn’t cover liability, additional living expenses, or personal property.
The policy costs less in comparison to others, and it also provides less coverage. For this reason, it’s not available in all states, and when you have a mortgage, your lender usually recommends higher levels of protection. The policy covers perils arising from the following:
- Windstorm or hail
- civil commotion or rioting
- Lightning or fire
- Falling objects
2. HO-2 Insurance Policy
An HO-2 policy is a significant upgrade from an HO-1 approach. The arrangement will cover dwellings (home structure) at the replacement value and your personal property at its actual monetary value. In addition to the perils covered by the HO-1 policy, HO-2 also covers the following:
- Volcanic eruption
- Ice, snow, or sleet weight
- Power surges
- Built-in appliances
- Over-flow of water or stream
3. HO-3 Insurance Policy
The HO-3 policy arrangement will cover your home, liability, additional living expenses, and medical payments. Additionally, the HO-3 coverage has an ‘open-peril’ policy, meaning the arrangement will protect you from all perils unless exempted as an inclusion.
This policy coverage is also known as a special form. It will repair your house or replace it depending on the level of damage. The cover maximizes your policy limits, but the damage shouldn’t result from the listed exclusions. Examples of usual exclusions include earthquakes, intentional damage, negligence, power failure, pets, and insects. For this reason, always familiarize yourself with a list of all the exemptions.
4. HO-4 Insurance Policy
The HO-4 insurance policy is also known as the renter’s insurance policy. The design of the arrangement is for people renting houses and apartments. Also, the tenant’s belongings, liability, and additional living expenses are covered in the policy.
The arrangement doesn’t cover the structure, and a landlord will need separate insurance cover to protect the rental unit. A few examples of what the policy covers include explosions, volcanic eruptions, falling objects, explosions, windstorms, and hail.
The HO-5 arrangement is also known as comprehensive coverage. The policy offers the highest coverage for belongings and houses, except those listed as exclusions. Usually, the exclusions are similar to those under an HO-3.
The policy pays for replacement costs and not the actual cash value. The cover includes medical payments, liability, and additional living expenses. The arrangement is usually best for insuring new construction. Also, not many home insurance companies offer such policies.
Have a Rochester home? It’s advisable to take insurance coverage for your home for protection against perils. However, you’ll need to understand that there are various types of coverage, such as HO-1, HO-2, and HO-3. You’ll need to understand the different policies before deciding on the coverage that suits you best.
If you live near a flood-prone location, ensure you have home insurance to shield you against massive losses when the calamity hits. Remember, around 25% of floods usually occur in areas that aren’t considered flood-prone. For this reason, if you fear possible flooding damage, it makes sense to get flood insurance coverage to fill any holes in your homeowner’s insurance. Contact a reputable insurance provider or broker to get the most suitable cover for your home.