As a homeowner, your home is one of your biggest investments, so it’s safety should be of utmost importance to you. But figuring out homeowner’s insurance can be tricky, and it can be hard to determine what kind of coverage you should get.
And while it may be tempting to only get basic coverage, an all coverage homeowner’s insurance is the only way to safeguard your home against all worst-case scenarios.
Need homeowner’s insurance but not sure where to start? In this article, we’ll cover everything you need to know about homeowner’s insurance so you can protect your home in the best way possible.
What You Need to Know About Homeowner’s Insurance
With so many different insurance companies out there, it can be hard to determine which company is the best for you, and what plan will suit your needs. Your coverage can also differ based on the age of your home, its location, and its appraised home value.
What is Basic Homeowners Insurance?
As its name suggests, basic home insurance provides the bare minimum coverage for your home and your belongings. It’s often mandatory, as many mortgage lenders require borrowers to buy this kind of coverage as part of a home-financing condition. Here are the 3 insurance coverage levels you should know about:
HO-1 Policy
The H0-1 policy is the most basic kind of home insurance. It’s ideal for people who need to buy insurance but isn’t particularly interested or worried about potential damage to their home. This policy covers damage caused by natural elements like fire, lightning, windstorms, and hail.
It’s important to note that this policy is very limited. In fact, it’s no longer even offered in every state.
H0-2 Policy
The H0-2 policy is a step above HO-1 and offers some broader coverage. It covers not only weather-related damage, but things like theft, vandalism, and damage caused by riots or civil unrest. This plan is ideal for people who aren’t necessarily looking for a full-coverage plan but want some peace of mind.
H0-3 Policy
H0-3 is the best of the three H0 policies because it offers the greatest amount of coverage. It covers everything that HO-1 policy and HO-2 policy cover and more.
It’s important to know that there are exceptions to this policy, and these exceptions differ by policy and provider, so you should talk to your insurance provider beforehand to make sure you know what’s included.
Why All Coverage Insurance is Best
Did you know most basic insurance plans only cover up to 40% of your home’s insured value? An all coverage plan will protect not just the exterior of your home but the contents inside of it. Here are some benefits of comprehensive coverage:
- Your home’s contents are protected during natural disasters
- Anyone injured on your property will be covered by medical coverage costs
- Your belongings are covered against theft and vandalism
- Additional benefits if you have a unique property, like a historic home
If you’re worried about your home and think your basic plan won’t cover everything you need, you should absolutely get an all coverage insurance plan.
Final Thoughts on Home Coverage
No one wants to think about worst-case scenarios, but it’s important to be prepared should anything truly bad happen to your home. With all coverage insurance, you can rest easy knowing your home is safe regardless of what happens. It may be more expensive than a basic plan, but the peace of mind it offers is priceless.
Do you have all coverage plan for your home, or are you looking for a provider? If you live in North Carolina, contact us for more information about property insurance!
