The terms of home insurance are divided into “Named-Peril” (specified danger) and “Open-Peril” (not designated danger). Named-peril insurance only covers the conditions specified in the contract; open-peril does the reverse, covering everything except the exclusions specifically listed in the contract. The Open-peril clause is more beneficial to the policyholder, but the price will also be more expensive. Sometimes it may be more economical to choose named-peril and add an additional endorsement to a specific situation.
According to different claims, housing insurance is mainly divided into the following 8 types:
HO-1: The most basic home insurance, named-peril only pays for fire or smoking, explosions, lightning, hail and storms, theft, malicious damage, vehicle damage, aircraft damage, riots and civil unrest, volcanoes The loss of housing and construction caused by 10 situations, such as the outbreak, may also bring some personal property claims, but does not include liability insurance.
HO-2: Basic housing insurance, in addition to covering HO-1’s claims coverage; it also increases the weight of ice, snow or sleet due to object fall, freezing of housing systems such as heating and heating, and sudden changes in other household systems such as houses and plumbing Tearing, cracking or swelling, sudden overflow of water or steam, and sudden and accidental damage caused by artificially generated currents, caused by 6 additional circumstances, such as house construction loss and listed types of personal property loss; include liability insurance.
HO-3: In addition to the coverage of HO-2 insurance, the most common house insurance is open-peril, which means it can be reimbursed except for the cases listed specifically.
HOB: It is almost the same as HO-3. Both are settled as open-peril in terms of housing construction, but they are settled as named-peril in terms of personal property. The difference between the two is that HOB has a slightly wider range of water claims than HO-3. Larger, and will also include some “attachment” claims at home such as boats, lawnmowers, tractors, etc.
HO-4: This type is also commonly known as “Renters Insurance” (rental insurance/tenant insurance), which only covers personal property loss and liability insurance within the scope of HO-2, excluding housing construction.
HO-5: This can be regarded as the widest range of housing insurance. On the basis of HO-3, both housing construction and personal property are open-peril, except for those specifically listed. At the same time, this type of housing Insurance prices will also be higher.
HO-6: The sixth category is commonly known as “Condo Insurance” (Condo Insurance / Apartment Insurance). This type of insurance includes personal property and liability insurance, as well as insurance for building structures such as walls, floors, and ceilings within the apartment; as for The insurance of the public part of the apartment is usually the responsibility of the homeowners’ association, the HOA.
HO-7: The seventh category is commonly known as “Mobile Home Insurance” (mobile home insurance). The coverage of this insurance is similar to HO-3, but the details are specifically designed for mobile homes.
HO-8: The eighth type of insurance clause is designed for old houses. The clause is similar to HO-3, but the construction payment is capped with the actual cash value. Historical buildings and registered landmarks usually use this insurance.