Things Your Homeowner’s Insurance Needs To Cover

 

Are you the process of purchasing a new home? If so, then you should be aware the homeowner’s insurance is an essential part of owning a home. But what should it cover? Let’s take a look!

A homeowner’s insurance policy (also known as HO-1) generally covers your house and its possessions from damage or destruction. A basic homeowner’s insurance policy should always cover the following:

  • Fire and smoke
  • Lightning
  • Riots and civil commotion
  • Hail (check your policy to see if this is covered in your area)
  • Windstorm (check your policy to see if this is covered in your area)
  • Explosion
  • Aircraft  (and objects falling from it)
  • Vehicles (and objects that were thrown from it)
  • Vandalism (check your policy to see if this is covered in your area)
  • Malicious damage
  • Theft
  • Volcanic eruption

Policies vary from state to state so it is always a good idea to check what basic conditions are covered. You may also wish to purchase an upgraded policy that covers more.

An upgraded homeowner’s insurance policy (also known as HO-2) covers you from even more than the above-mentioned perils. In addition to being covered by everything listed above, you should also receive coverage from the following:

  • Weight damage from ice, snow or sleet
  • Falling objects
  • Flooding as a result of your plumbing system, appliances, HVAC or fire-protection sprinkler system
  • Damage to electrical parts caused by artificially generated electrical currents (for example, as a result of a power surge that has not been caused by lightning). However, damaged electronics are not normally covered.
  • Breaking of glass
  • Abrupt collapse (for example, as a result of termite damage)

The above list also applies to the homeowner’s insurance policy you purchase for a condo (where it is then known as HO-6 and not HO-2).