Insurance for the Homeowner

The insurance that all homeowners have, also called property insurance, is coverage for your property from loss or damage as well as liability protection for your family or any guest if something happens to them while on your property.  This type of insurance is not a choice, it is something that you must have as it is required by the lender.

This type of insurance covers the cost of either repairing or rebuilding your home in case of fire for example. But there are two exceptions here, and they are earthquakes and floods.  That is covered by another insurance that is separate from homeowners.
There are many forms of homeowners insurance and the most common is the Ho-3 which is comprehensive coverage and also known as the special policy.

Ho-1 is the policy that is basic and will cover what is specified in that policy which generally covers things like hail, lightening, fire, vandalism or theft. The HO-2 is the same at the Ho-1 but with added coverage for things like heating or plumbing problems.  The Ho-3 is the typical homeowners insurance and covers most issues, some call it a blanket policy.