When shopping for home insurance, there’s much more to consider than how
much your coverage will cost.

You need to buy the right type of policy. You need the proper level of
protection, plus special provisions for valuables such as jewelry, your
computer equipment and other possessions. You might also need additional
coverage for such things as earthquakes or flooding.

Lending institutions usually require mortgage customers to purchase
homeowners insurance. Don’t rely on the coverage levels mandated by your
bank or mortgage company. Those levels are designed to protect the house
itself, but not necessarily your possessions. That’s why it’s important to
check with your agent or insurance company, to make sure you have adequate
coverage.

Basic policies
There are several basic types of home insurance policies:

HO-1
Basic homeowners policy
Covers your house and possessions against 11 different perils.
HO-2
Broad homeowners policy
Covers house and contents against 17 perils, with premiums running about 5
percent to 10 percent more than an HO-1 policy.
HO-3
Special homeowners policy
Covers all perils except those specifically excluded by the policy. Costs 10
percent to 15 percent more than an HO-1 policy.
HO-4
Renters Policy
Covers 17 named perils and includes liability coverage. It does not insure
the dwelling itself.
HO-5
· Extensive homeowners policy
Covers damage from practically everything except earthquakes, wars and
floods.
HO-6
For owners of co-ops or condominiums
Provides personal property coverage, liability coverage and specific
coverage of improvements to the owner’s unit. Insurance provided by the
owner’s association normally covers most of the actual structure.
HO-8
Policy for older homes
Covers the same perils as HO-1 but pays only for repair costs or actual cash
value, since replacement cost could make the policy costly.
These policies are standard except in Texas, where the state insurance board
specifies three types of policies listed below.

HO-A
Covers your home and possessions against named perils only, for actual cash
value.
HO-B
Covers the dwelling for all perils unless excluded against all risks and
contents against named perils. The house is covered for replacement cost up
to policy limits, while contents are covered for actual cash value unless
you buy additional replacement cost coverage.
HO-C
Covers house and contents against all risks not specifically excluded by the
policy. Again, the house is insured for replacement cost up to policy
limits, while contents are covered for actual cash value unless you buy
additional coverage.
There are variations on these policies as well. For example, landlords can
buy coverage that insures only their buildings and not your personal
property (which is what a renters policy would cover). You can get special
policies to cover mobile homes (a.k.a. manufactured housing).

For More information please call 718-370-8400