The Main Types of Homeowner’s Insurance Policies

Homeowner’s insurance comes in many different types to fit the needs of those living in Midland, TX. Buying the right kind of policy is crucial to your well-being and that of your family. If you’re unsure of what you need in a homeowner’s policy, Ledford Agency LLC will gladly guide you through the process.

Home Policies Have a Number Designation

Consumers will find eight basic types of home insurance policies, each with the letter HO, a dash, and the numbers 1 through 8. You’ll find this designation on your policy’s declaration page. Each refers to a specific type of coverage.

The following are the different types of policies you may encounter:

• HO-1, providing barebones coverage for only ten specific perils
• HO-2, known as the broad form, provides additional coverage, including dwelling coverage, personal liability, and loss of use
• HO-3, an open peril policy, is the most common type issued
• HO-4, renter’s insurance, for those renting houses and apartments
• HO-5, the highest level of coverage, involving actual replacement costs
• HO-6, for those living in a condo or co-op
• HO-7, similar to an HO-3 but applying to mobile homes
• HO-8, for homes more than 40 years old that may have higher replacement costs

Why Designations Matter

If you purchase the wrong type of policy, you may not receive essential coverage. The best bet is to buy coverage in the amount that reflects your total assets. Anything beyond that will increase your liability protection for accidental injury or property damage.

Don’t Select the Wrong Policy

You may be tempted to choose an incorrect type of policy because it may be cheaper than the one that is right for your needs. Instead of guessing, let Ledford Agency LLC, serving residents in Midland, TX and surrounding areas, help you choose the most appropriate policy to cover your home and its contents.