Similar to auto insurance, a home insurance policy help you when unfortunate accidents occur. It can be even more unsettling when a trauma occurs within a home which is supposed to be a place of refuge from the rest of the world. Home Insurance gives you a safety net so that your life can return to normal.
Peril Specific Policies
“Perils” are specifically named possible accidents within a home insurance policy. HO-1 (HO stands for homeowners) is called the basic form and only covers damages incurred by 10 specific perils. These perils include lightning and hail damage, fire, theft, and damage from vehicles.
An HO-2 is a broad form and covers all the perils of the basic form plus six additional perils, such as electrical, freezing, and falling object damage. A broad form also protects many of your personal belongings within a house, unlike the HO-1. Neither of these policies are used very much anymore, as the increase in price to broader insurances is very little compared to how much coverage they give.
The HO-3 home insurance policy is called a special form and it is the most popular insurance policy. The HO-3 policy covers everything within its budget that the HO-1 and HO-2 cover along with any other accident, unless it is specifically excluded, such as earthquake damage. HO-3 insurance also covers structures such as a garage or deck, and your health bills if you got injured. Each policy differs and you’ll have to read the fine print of a home insurance policy in Tucson, AZ.
An HO-5, comprehensive form, is basically an upgraded HO-3 form that covers almost the same things, but with a bigger budget. An HO-8 is also an adjusted broad form that is specific to older houses that have different problems. The other numbered insurance policies are adjusted HO-3 forms specific to other types of homes, such as rentals, mobile homes, and condos. In short, if you understand what is in a special form you can understand the others easily enough. To get more details or you can visit onecallinsuranceaz.com.