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Answering Common Questions About Homeowner’s Insurance

On August 26, 2022
Home Insurance

Investing in homeowner’s insurance offers financial protection from unexpected accidents, natural disasters, theft, property damage, and more. Your home is a haven of safety and comfort for you and your family, and it’s an investment that you want to protect at all costs. Choosing the right homeowner’s insurance plan gives you space and freedom from worrying about what might go wrong with your home, or how you will pay for it. Before choosing a homeowner’s insurance plan, take a read through of these common questions about homeowner’s insurance and why it’s a necessary investment: 

Why Do I Need Homeowner’s Insurance?

Homeowner’s insurance is crucial because it protects you from loss or costly repairs if your home or possessions are damaged or lost. Homeowner’s insurance can also protect you from liability if there is an accident, injury, or death at your home. For instance, if you have a pool or a tree house and someone is injured while using it, homeowner’s insurance can protect you from personal liability. Some homeowner’s insurance policies even protect you from liability if your pet causes damage or injury on your property. After spending so much money on your home, and spending so much time making it a respite from the outside world, purchasing homeowner’s insurance is the last piece of the puzzle that guarantees you won’t have to worry about financial losses due to property damage, theft, fire, flooding, accidents, or other catastrophes. 

What Types of Homeowner’s Insurance Policies are Available? 

Most insurance companies offer eight different types of homeowner’s insurance policies. You will need to discuss which type is applicable to your needs when you meet with your insurance company. The eight types of insurance available are: 

  • HO-1: Basic – the most basic type of homeowner’s insurance policy. Covers damage to home and property caused by fire or lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, vandalism and mischief, theft, and volcanic eruptions.
  • HO-2: Broad – offers coverage for a broader variety of incidents in addition to those covered by basic insurance. This may include damage caused by the weight of ice or snow on a structure, the accidental overflow or discharge of water or steam, freezing, cracking or bulging caused by a sudden and accidental event, accidental discharge from an artificially generated electrical current (i.e., a power surge), and falling objects.
  • HO-3: Special – this is the most common type of homeowner’s insurance as it offers the broadest range of coverage. This type covers everything listed above while offering coverage at your home’s replacement cost and personal property at its cash value.  
  • HO-4: Contents Broad – this is most common for renters.
  • HO-5: Comprehensive – this is the highest level of homeowner’s insurance for a single-family home. It covers your home and personal belongings at replacement cost (rather than the lower cash value amount). Your home and personal belongings will both be covered and there are also higher coverage limits for certain types of personal property, such as art, jewelry, and electronics.
  • HO-6: Unit-owners – this is most common for people who live in a co-op or condominium, as it offers some coverage for common areas as well as your unit.
  • HO-7: Mobile Home – this insurance is for single- and double-wide manufactured homes, single- and double- wide mobile homes, trailers (including travel trailers and fifth-wheel trailers), sectional homes, modular homes, and park model homes.
  • HO-8: Modified Coverage – this coverage is for high-risk homes that can’t be covered under other, more traditional homeowner’s insurance policies. This coverage is based on the home’s actual cash value and not its replacement cost. This type of policy is meant for older homes, homes constructed with aluminum wiring (which is prone to fire), with a damaged roof, with significantly outdated plumbing, or that have other issues which would need correcting in order to qualify for another type of homeowner’s insurance.

What Does Homeowner’s Insurance Cover? 

Depending on the type of homeowner’s insurance policy you purchase, homeowner’s insurance can cover a wide variety of potential circumstances, including: 

  • Property damage – property damage includes any damage to your home or any other structures on your property. You will get a payout from your insurance company if there is any damage or loss that requires repair or replacement due to any covered event. Covered events may include fire, storm damage, and vandalism. Some events are commonly excluded by homeowner’s insurance and require riders or additional insurance policies, such as flood damage and earthquake damage.
  • Property loss – this is protection from property loss due to accident, damage, or theft. 
  • Personal liability – if you, a family member, or a pet causes damage, accident, injury, or death on your property, this coverage will protect you. It can even protect you if an accident or injury occurs at your home through no one’s fault, such as a slip and fall. 
  • Added living costs – this applies if your home becomes uninhabitable for a reason beyond your control and you have to seek temporary alternative living arrangements, such as a hotel or short-term rental property.

Am I Required to Purchase Homeowner’s Insurance? 

Some states do require homeowners to have an active, valid homeowner’s insurance policy, while some states do not. If you have a home mortgage, your mortgage lender may require you to have homeowner’s insurance, as it is a way to protect their investment. Even if homeowner’s insurance isn’t required, it makes good financial sense to protect yourself, your family, and your home.

How Do I Choose the Right Homeowner’s Insurance Policy?

In choosing the right homeowner’s insurance policy, you’ll need to consider the type of home you have, its age and value, the common perils in your region and neighborhood, your budget, and what you could afford to pay, replace, or repair if your home or belongings were lost or damaged. You will also need to consider your reimbursement type – a cash value policy or a replacement cost policy. This decision may depend upon your area’s real estate costs, construction costs, and the age and value of your home. You will also need to determine if you need specialty coverage or additional insurance riders, flood insurance, or landlord insurance. 

Call Us at Hull Maynard Hersey Insurance for a Free Quote

If you’re ready to learn more about purchasing a homeowner’s insurance policy in ME, NH, VT NY, or MA, contact us at Hull Maynard Hersey Insurance for a free quote. We can provide a variety of options for homeowner’s insurance from different carriers, ensuring you receive the best possible rate on your coverage. We can work closely with you to make sure you’re happy with your homeowner’s insurance policy and have the coverage you need to protect your home, family, and personal belongings. 

We won’t try to pair you with a one-size-fits-all policy. We’ll help you explore your options for your insurance coverage. Call us at (800) 693-3002 or request a quote online

About the Author

Jill Maynard-Nolan
President at Hull Maynard Hersey Insurance
Jill Maynard Nolan is the president of Hull Maynard Hersey Insurance. Jill has been in the insurance industry since 1991, following in her father’s footsteps - Hull Maynard. Jill and her team is dedicated to provide the customer service you need to feel comfortable and confident purchasing any type of insurance you might need.

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