In Texas, Homeowners insurance offers coverage that protects homeowners in case of an unexpected situation that leads to damage or destruction. This type of insurance is very important due to the severe weather the state is known for. There are many different types of homeowners insurance from which to choose, and making a decision about coverage can be confusing if people are not provided with details about each option. Consulting a Sugar Land homeowners insurance agent can help individuals better understand their options. A brief overview of each type of insurance is provided to give homeowners more information about their options before they make a final decision with their Sugar Land insurance agent.
Basic Homeowners Insurance: HO-1
Most people do not choose HO-1 insurance because of the availability of affordable plans that offer more coverage. Damage done to the home or its contents are covered under this type of policy, but the damage must be done by one of 11 defined perils. These perils are:
- Volcano eruption
Broad Homeowners Insurance: HO-2
HO-2 is a policy that provides the basic coverage of HO-1 with a few additions. Additional perils covered by this type of insurance include:
- Weight of ice, snow or sleet
- Water overflow
- Falling objects
- Sudden, accidental damage from artificially generated electricity
- Tearing, bulging, cracking or burning related to a sudden and accidental incident
Special Form Homeowners Insurance: HO-3
This type of policy is the most common. HO-3 insurance plans offer coverage for everything except items that are listed as exclusions for each individual homeowner. Homeowners have the opportunity to work with an insurance agent to come up with an appropriate list of exclusions based on the location of a home. For example, people who live in an area that very seldom experiences earthquakes would not need coverage for earthquake damage.
Renters Insurance: HO-4
Renters insurance provides coverage for renters and their personal property when it is being kept inside of a rental property. Coverage is offered for all 17 of the defined perils, but it is important to note that damage to the property itself is not covered under HO-4 plans.
Premiere Homeowners Insurance: HO-5
HO-5 coverage expands upon HO-3 coverage by including personal property inside the home in the policy. HO-3 only protects personal property against the 17 defined perils. HO-5 provides coverage for any event that is not specifically excluded in the policy.
Condo Insurance: HO-6
Condo insurance is targeted to personal property and liability as it relates to a single condo. The scope of an HO-6 policy is narrower than other policies because of the fact that common areas in a condo building and the surrounding grounds are covered by the condo association.
Older Homes Insurance: HO-8
Older homes present unique problems when it comes to insuring these properties. The biggest issue with older homes is that it often costs significantly more to replace a home if it is destroyed than the home is currently worth. For example, an older home that is worth $200,000 may cost $300,000 to replace if it is lost in a fire. Perils covered under the HO-8 policy are the same as those covered by an HO-1 policy.
A Sugar Land insurance agent can help homeowners understand their unique needs when it comes to homeowners insurance. An agent who also specializes in Sugar Land auto insurance can ensure that their clients get all of the coverage that they need and may be able to offer a discount if both home and auto insurance are underwritten by the same company.