Home insurance protects your assets from potential challenges, but the policy that you need and the type of plan that is best for your goals can vary. Recognizing your options can make it easier to determine the best plan for your situation.
HO-2 Plans
A HO-2 policy is a basic home insurance plan that protects against common perils. It will pay for damages to your house and the loss of property when a situation arises that is covered in the plan.
The downside of the policy is that it does not cover every possible situation that may arise. It only provides coverage for the situations that are specifically listed. As a result, you may need to purchase additional protection for certain concerns that may arise. Before you assume that the plan is appropriate, determine the perils that are covered.
HO-3 Plans
When you want a more comprehensive plan, a HO-3 policy may be appropriate. The plan is designed to address the majority of your concerns and most situations. Instead of listed situations that are covered, the policy will protect against most problems unless it is specifically excluded from the policy.
Generally, flooding and earthquakes are excluded from the plan, so you should expect that the policy will not pay for those situations. Other storms, fires and break-ins are usually covered under the policy. You can make a claim in most situations, but you may want to purchase additional protection if any exclusions are a concern.
There are a variety of options to protect your house, but the most common choices are designed to protect against common perils and problems. The key is selecting the right plan based on your budget and concerns. To learn more, contact us to talk to an agent today.
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