Homeowner Insurance

Homeowner insurance is property insurance that covers privately owned homes. It is sometimes called home insurance, hazard insurance, or property insurance. But strictly speaking, homeowners insurance is used to insure homes or residences.

There are seven types of homeowner policies.

H01 – Basic Homeowner

Coverage for the home is provided against 11 types of peril. Contents of the home are generally included, but they must be enumerated in the policy. Perils generally include lightning, wind, fire, smoke, hail, theft, vandalism, riot or civil commotion, glass breakage, damage done by vehicles or aircraft, and personal liability.

Floods and earthquakes are not covered under this type of policy.

H02 – Broad Homeowner

Coverage for the home is provided against 17 types of peril. The 11 types listed in H01 are included, along with specifically listed perils.

H03 – All Risk Homeowner

This is the standard form of home insurance that is most commonly used for single-family homes. This type of policy contains all risk coverage of the home. Some perils are excluded, such as floods or earthquakes.

H04 – Renter’s Insurance

This is a tenant form of insurance, generally limited to renters. It includes the same property protection as H02.

H05 – Comprehensive

This is an improved version of H03. Personal property within the home is covered exactly the same as the home itself. With H03 policies, the insured must prove that personal property was damaged by one of the 17 perils. With H05 policies, the insurance company pays personal property claims, unless it can prove the property was damaged by one of the excluded perils.

H06 – Condominium

This type is for condominium owners, and generally includes the same property protection as H02.

H08 – Old Homes

This type of policy is for owner-occupied older homes that have a replacement cost that exceeds the property’s fair market value.

Today most homes are purchased on credit (a mortgage). The lender always requires, as a condition of the contact, that the borrower insure the home by means of homeowner insurance. This is done to protect the loan interest of the lender.