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Permanent Homeowner Insurance Types

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Types of Permanent Homeowner Insurance

Once construction is completed and the home is occupied, permanent homeowner insurance (also known as homeowners insurance) becomes necessary to protect the property and its contents. Here are the main types of permanent homeowner insurance policies:

  1. HO-3 Policy (Special Form):
    • Dwelling Coverage: Covers the structure of the home against all perils except those specifically excluded in the policy.
    • Personal Property Coverage: Protects personal belongings such as furniture, clothing, and appliances from covered perils.
    • Liability Coverage: Provides financial protection against lawsuits for bodily injury or property damage caused to others.
  2. HO-4 Policy (Renters Insurance):
    • Personal Property Coverage: Covers personal belongings within a rented dwelling, including apartments or rental homes.
    • Liability Coverage: Protects against liability claims for accidents that occur within the rented property.
  3. HO-6 Policy (Condo Insurance):
    • Interior Coverage: Covers personal belongings, improvements, and additions within the condominium unit.
    • Liability Coverage: Protects against liability claims for accidents within the unit or damage to other units.
  4. HO-5 Policy (Comprehensive Form):
    • Enhanced Coverage: Provides broader coverage than HO-3, including higher limits and fewer restrictions on personal property coverage.
    • All-Risk Coverage: Covers the dwelling and personal property against all perils unless explicitly excluded in the policy.

  5. HO-8 Policy (Modified Coverage Form):

    • Older Homes: Designed for older or historic homes that may have unique construction features or limited replacement cost value.
    • Actual Cash Value: Pays for repairs or replacement based on the actual cash value rather than the replacement cost of the home and contents.

Permanent homeowner insurance provides ongoing protection once construction is completed. Homeowners should carefully select the appropriate type of homeowners insurance based on their property type, coverage needs and financial considerations to ensure comprehensive protection against unforeseen events.