Home Insurance 101 - Pick The Policy That's Right For You

Owning a home can mean different things to different people. Some people value their home as their most prized possession, while others consider it merely a place to rest their head at night. The difference in sentiment toward the home can be a reflection of what type of home insurance policy a homeowner opts to buy. In the insurance market today, there are home insurance policies available for all types of people.

If you want the cheapest policy possible...

Many homeowners don't want to spend money on insurance. They would rather take the risk of under insuring the home than pay a high insurance premium every year. If you prefer to self-insure for most perils, then you should purchase either a HO1, HO8, or a basic HOA home insurance policy. All three of these insurance policies are very minimal coverage. They will only protect the home from ten perils. The two most important perils covered with these policies are fire and wind. Any coverage for water, falling objects, and other perils are not included in these policies.

If you want good protection at a good price...

Most homeowners fall into a "middle of the road" category, where they want adequate coverage, but do not want to spend an arm and a leg on insurance. If you fall into this category, you should purchase either a HO2, HO3, or HOB home insurance policy. The HO2 is more coverage than the policies listed above, but less coverage than the HO3 and HOB, and thus should be slightly less expensive. All three policies, however, are solid policies. The HO2 lists perils your home insurance covers, while the HO3 and HOB cover everything with the exception of a few exclusions. All of these policies do include coverage for falling objects and include at the least basic water coverage like Sudden & Accidental Water Damage.

If you want the best possible home protection...

There are many homeowners who want the absolute best protection for the home no matter the cost. There are two policies designed specifically for people who want to make sure that they have the most adequate protection the market offers. Those policies are the HO5 and the HOC home insurance policies. These two policies go above and beyond any coverage that lesser policies have. They will cover both your home and property for open perils, and the exclusion list for perils not covered is small.

Are you interested in learning more about each type of home insurance policy available? Insurance Education Group is a company aimed at helping people make the right home insurance decisions the first time, so when disaster strikes you will be ready. Insurance Education Group also offers a way for you to field multiple quotes from multiple companies in a matter of a few minutes! Just enter your zip code in the box on IEG's main page to start, and you'll be connected to agents ready and willing to help you save. So whether you are searching for New York, Los Angeles, or Houston home insurance, we've got you covered!