Home Contents Insurance – Everything you’ve ever need to know about HOIs
Since 1971, home content insurance policies have been standardized according to the Insurance Services Office, located in New Jersey, and home content insurance policies now come in seven different types, known as HO-1 through to HO-8, with HO-7 missing.
A basic HO-1 a insurance policy to cover your home and house contents will cover only the items specified within the policy, and may be useful if you have many valuable items within your home which would be difficult or expensive to replace. However, most people prefer to go for a more comprehensive insurance policy.
A HO-2 home insurance policy is, like the HO-1, limited. A HO-2 home insurance policy will only cover specific portions of your home against damage. Usually, the exact events that are covered are listed within the policy as ‘named perils’.
The most common home insurance policy is the HO-3, which is designed to cover the structure and contents of the home as well as protect any visitors or encounter accident or injury on the premises, or any liability that may arise from daily use. This kind of home insurance policy is also known as an ‘open perils’ or ‘all risk’ policy, and the exact aspects of the home which are covered by the homeowners insurance policy as well as the exact limits of liability will be clearly spelled out within the insurance policy.
The HO-4 insurance policy might also be known as renters insurance or renters coverage, and usually apply to those who rent apartments. The HO-4 policy will usually specifically cover those aspects and contents of the apartment rented that are not specifically covered in the policy written for the building as awhile, and may also cover liabilities which arise from intentional injuries or accidents suffered by guests or passers-by within a certain distance of the apartment covered by the insurance policy.
The HO-5 policy is similar to the HO-3, and covers a home, homeowner, and their possessions, as well as any liability which might arise from passers-by or visitors. The main difference between a Ho-5 and a HO-3 insurance policy is in that the HO-5 policy only applies to a home, rather than an apartment, and offers wide coverage over incidents and losses.
Also known as ‘condominium coverage’, the HO-6 policy, designed specifically for the owners of condos, and includes coverage for the specific part of the building and the property within it owned by the holder of the insurance policy. The HO6 is a supplementary insurance policy, and has evolved to fill the gap between a blanket policy written for an entire neighborhood and the specific items owned by the holder of the insurance policy. A HO-6 insurance policy will usually cover residents and guest of the insured and, depending upon the individual policy, can cover incidents up to 150 meters from the insured property, as well as protect valuables against such events as theft, fire or water damage. The amount of coverage needed varies depending upon circumstances, so you should always check this before purchasing a HO-6 policy.
Finally, a HO-8 policy sometimes known as an “older homes” policy allows home owners to protect their home and items with a higher market cost at the lower market value rate of a normal insurance policy.
When choosing home contents insurance policies, it’s important to shop around and compare prices in order to get the home contents insurance that’s right for you, and offers the cheapest deal for your specific needs. Whether in the UK or Texas, choosing the right home care and home health insurance cover, and getting the best home and contents insurance for your needs isn’t something that should be rushed.