Understand what’s covered
There are eight main categories of homeowner’s insurance, designated HO-1 through HO-8. HO-1 isn’t used that much anymore, but the rest offer varying degrees of coverage against specific damages.
HO-3 is the most popular kind of coverage. It covers homeowners against all perils unless specifically exempted.
These so-called perils include, but are not limited to:
- Lighting and fire damages
- Hail and wind
- Explosions
- Damage caused by vehicles or aircraft
- Civil unrest and riots
- Vandalism
- Smoke
- Damage caused by the weight of ice, sleet, or snow
- Damage caused by volcanoes
- Catastrophes caused by the freezing of various home systems
The kinds of perils that are covered in a home insurance possible can be very exacting. The specificity of terms can limit coverage or require purchase of additional coverage. If you are unaware of how a claim can be successfully approved, owning such coverage can be almost self-defeating. Let’s explore some additional examples.
