When moving your family into a new home, homeowner’s insurance is an important consideration to make. Home insurance not only serves to protect you when your house or appliances sustain damages, but oftentimes, it is also a requirement when purchasing a home with a mortgage. Here are some of the most important things you should know about insuring the home you may be moving into.
Homeowner’s insurance: What is it?
This kind of policy is referred to either as home insurance or homeowner’s insurance. The two names are used interchangeably to refer to the same thing: an insurance policy that, depending on the specific terms, serves to cover any damages that may occur to the physical structure of the home, the contents of the home, other structures on your property, and even injuries that may be sustained as a result of those damages. Home insurance offers you, as the homeowner, peace of mind for the worst-case scenarios of life. Events that lead to you putting your policy to good use can be dangerous and difficult to endure as it is. But going through these kinds of things without a home insurance policy can make it even more difficult, leading to higher costs, less stability in your living conditions, and potentially greater, unmanageable liability on your part.
Types of Policies
There are eight common policy types of homeowner’s insurance. Some of these types of policies are not applicable to the traditional, standalone home. There are also policies specific to mobile homes, condos, and rental properties. There is even a policy type designed for older homes. Barring these kinds of policies, these are the ones that are most likely to be applicable for the traditional, single family home:
- HO-1: This is a basic policy that offers the lowest cost, but only covers specific types of damages called “perils” that will be defined in the policy terms.
- HO-2: This is a broader version of the first policy listed. This policy serves to cover perils as well, but the list of definitions for this term will include more covered damages.
- HO-3: This type of home insurance policy uses exclusionary terms to specify what is covered and what is not. If this type of policy doesn’t list a peril as one that is excluded from coverage, then you are protected.
- HO-5: This type of policy offers the broadest protection. It is similar to the HO-3 model as it also is exclusionary in the language of the policy, but it excludes less. This policy, however, generally carries a higher cost.
This is some important information to keep in mind as you move into your new home. We hope this helps you keep yourself and your family safe as you transition!
For other moving help, call your local Kansas City relocation company, A. Arnold Moving, today!