Home Insurance

Welcome to the Homeowners Insurance Resource Center

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For most of us our home is our most valuable financial asset, but it’s also a vulnerable asset. A windstorm can blow your roof off, a burglar can steal your home entertainment system, or a neighbor could trip and fall on your front step. To provide protection from the financial risks associated with these potential disasters, most New Yorkers purchase a homeowners multi-peril policy. A homeowners policy wraps a number of coverages-- fire, windstorm, theft, liability—into one convenient package.

This resource center is designed to help homeowners choose the right coverage, the right company, and the right price. The center will familiarize you with basic homeowners’ terms, describe the major policies that are available, and provide important shopping tips. Separate sections devoted to renters and condominium owners are under construction, however much of the advice in this resource center is also applicable to renters and condominium owners. You can also consult our Consumer Shopping Guide for Homeowners and Tenants Insurance which is available on our Web site.

New Yorkers have long enjoyed a competitive homeowners insurance market. In fact, nearly 200 insurers currently write homeowners insurance in New York State and these companies generate over $2 billion in annual premium. This resource center will help you choose among these insurers in order to provide the best protection for you and your family.

Select the appropriate subject from the links below:

Consumer Shopping Guide links:

Homeowners Guide links:

How do I file a homeowners claim?

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If someone has become injured on your property or if a violent storm destroys your home, you will need to file a claim with your insurance company. Remember, a homeowners policy is a contract between you and your insurance company. And there are rules and procedures that you and your insurer must follow. Read your insurance policy to see what your responsibilities are.

Report any crime to the police
If you are the victim of a theft or your home has been vandalized or burglarized, report it to the police. Get a police report and the names of all law enforcement officers that you speak with.

Phone your agent or company immediately
Insurance policies place a time limit on filing claims. Find out what the time limit is. Ask questions: Am I covered? Does my claim exceed my deductible? (Your deductible is the amount of loss you agree to pay yourself when you buy a policy.) How long will it take to process my claim? Will I need to obtain estimates for repairs to structural damage?

Make temporary repairs
Take reasonable steps to protect your property from further damage. Save receipts for what you spend and submit them to your insurance company for reimbursement.

Prepare a list of lost or damaged articles
You are going to need to substantiate your loss. Avoid throwing out damaged items until the adjuster has visited your home. You should also consider photographing or videotaping the damage. Prepare a home inventory, make a copy for your adjuster and supply him or her with copies of receipts from damaged items.

If you need to relocate, keep your receipts
If your home is severely damaged and you need to find other accommodations while repairs are being made, keep records of all additional expenses incurred. Most homeowners insurance policies provide coverage for the “loss of use” of your home.

Get claim forms
Once your insurance company has been notified of your claim, the company is required to send you the necessary claim forms to you by the end of a specified time period. (The time period varies from state to state.) Return the properly filled out forms as soon as possible in order to avoid delays.

Have an adjuster inspect the damage to your home
Your insurance company will probably arrange for an adjuster to come and inspect your home.

Once you and your insurance company agree on the terms of your settlement, state laws require that you be sent payment promptly. In most cases, your claim will be processed quickly. If you have any questions about the claim filing laws in your state, call your insurance agent or your state department of insurance.

How do I pick an insurance company?

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There are many insurance companies, so choosing between them can be a challenge. Here are the main points to keep in mind when selecting an insurance company:

Licensing
Not every company is licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there’s a problem. To find out which companies are licensed in your state, contact the state insurance department.
Price
Many companies sell insurance policies and prices vary greatly from one to another, so it really pays to shop around. Get at least three price quotes from companies, agents and from the Internet. Your state insurance department may publish a guide that shows what insurers charge for different policies in various parts of your state.
Financial Solidity
You buy insurance to protect you financially and provide peace of mind. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.
Service
Your insurance company and its representatives should answer your questions and handle your claims fairly, efficiently and quickly. You can get a feel for whether this is the case by talking to other customers who have used a particular company or agent. You may also want to check a national claims database to see what complaint information it has on a company. Also, your state insurance department will be able to tell you if the insurance company you are considering doing business with had many consumer complaints about its service relative to the number of policies it sold.
Comfort
You should feel comfortable with your insurance purchase, whether you buy it from a local agent, directly from the company over the phone, or over the Internet. Make sure that the agent or company will be easy to reach if you have a question or need to file a claim.

HOMEOWNERS INSURANCE INFORMATION

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How much will it cost?

There are many factors an insurance company uses to determine the price of your policy:

The square footage of the house and any additional structures.
Building costs in your area.
Your home's construction, materials and features.
Amount of crime in your neighborhood.
The likelihood of damage from natural disasters, such as hurricanes and hail storms.
The proximity of your home to a fire hydrant (or other source of water) and to a fire station, whether your community has a professional or volunteer fire service and other factors that can affect the time it takes to put out fires.
The condition of the plumbing, heating and electrical system.

If you rent your home or own a condo or co-op, your insurer will not consider the size of the dwelling or building costs. However, the insurance company will take into account factors that make damage to your possessions more likely.

Are there different types of policies?

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Yes. A person who owns his or her home would have a different policy from someone who rents. Policies also differ on the amount of insurance coverage provided.

The different types of homeowners policies are fairly standard throughout the country. However, individual states and companies may offer policies that are slightly different or go by other names such as “standard” or “deluxe”. The one exception is the state of Texas, where policies vary somewhat from policies in other states. The Texas Insurance Department ( http://www.tdi.state.tx.us ) has detailed information on its various homeowners policies.

The chart below lists the disasters covered in each of the following types of policies:

	Dwelling & personal property		Dwelling	Personal property			Dwelling & personal property
Perils	Basic HO-1*+	Broad HO-2*	Special HO-3*	Special HO-3	Renters HO-4	Condo/ Co-op HO-6	Modified Coverage HO-8
1. Fire or lightning	x	x	x	x	x	x	x
2. Windstorm or hail	x	x	x	x	x	x	x
3. Explosion	x	x	x	x	x	x	x
4. Riot or civil commotion	x	x	x	x	x	x	x
5. Damage caused by aircraft	x	x	x	x	x	x	x
6. Damage caused by vehicles	x	x	x	x	x	x	x
7. Smoke	x	x	x	x	x	x	x
8. Vandalism or malicious mischief	x	x	x	x	x	x	x
9. Theft	x	x	x	x	x	x	x
10. Volcanic eruption	x	x	x	x	x	x	x
11. Falling object		x	x	x	x	x
12. Weight of ice, snow or sleet		x	x	x	x	x
13. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance.		x	x	x	x	x
14. Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system.		x	x	x	x	x
15. Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance.		x	x	x	x	x
16. Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component)		x	x	x	x	x
All perils except flood, earthquake, war, nuclear accident, landslide, mudslide, sinkhole and others specified in your policy. Check your policy for a complete list of perils excluded.			x
* HO-1, HO-2 and HO-3 refer to standard Homeowners Policies. +HO-1 has been discontinued in most states.

If you own your home

If you own the home you live in, you have several policies to choose from. The most popular policy is the HO-3, which provides the broadest coverage. Owners of multi-family homes generally purchase an HO-3 with an endorsement to cover the risks associated with having renters live in their homes.

HO-1: Limited coverage policy
This “bare bones” policy covers you against the first 10 disasters. It's no longer available in most states.

HO-2: Basic policy
A basic policy provides protection against all 16 disasters. There is a version of HO-2 designed for mobile homes.

HO-3: The most popular policy
This “special” policy protects your home from all perils except those specifically excluded. (Click on the link below for a sample HO-3 form; you will need Acrobat which you can download, free of charge, from the Adobe Web site: http://www.adobe.com/products/acrobat/).
Download/View File: HO-3 Form (160 K)

HO-8: Older home
Designed for older homes, this policy usually reimburses you for damage on an actual cash value basis which means replacement cost less depreciation. Full replacement cost policies may not be available for some older homes.

If you rent your home

HO4-Renter
Created specifically for those who rent the home they live in, this policy protects your possessions and any parts of the apartment that you own, such as new kitchen cabinets you install, against all 16 disasters.

If you own a co-op or a condo

H0-6: condo/co-op
A policy for those who own a condo or co-op, it provides coverage for your belongings and the structural parts of the building that you own. It protects you against all 16 disasters.

Your level of coverage

Regardless of whether you are an owner or renter, you have the following three options:

Actual cash value.
This type of policy pays to replace your home or possessions minus a deduction for depreciation.
Replacement cost.
The policy pays the cost of rebuilding/repairing your home or replacing your possessions without a deduction for depreciation.
Guaranteed or extended replacement cost.
This policy offers the highest level of protection. A guaranteed replacement cost policy pays whatever it costs to rebuild your home as it was before the fire or other disaster–even if it exceeds the policy limit. This gives you protection against sudden increases in construction costs due to a shortage of building materials after a widespread disaster or other unexpected situations. It generally won't cover the cost of upgrading the house to comply with current building codes. You can, however, get an endorsement (or an addition to) your policy called Ordinance or Law to help pay for these additional costs. A guaranteed replacement cost policy may not be available if you own an older home.

Some insurance companies offer an extended, rather than a guaranteed replacement cost policy. An extended policy pays a certain percentage over the limit to rebuild your home. Generally, it is 20 to 25 percent more than the limit of the policy. For example, if you took out a policy for $100,000, you could get up to an extra $20,000 or $25,000 of coverage.

Even though a guaranteed/extended replacement cost policy may be a bit more expensive, it offers the best financial protection against disasters for your home. These coverages, however, may not be available in all states or from all companies.

HOMEOWNERS INSURANCE INFORMATION

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What is in a standard homeowners insurance policy?

	A standard homeowners insurance policy includes four essential types of coverage. They include: Coverage for the structure of your home. Coverage for your personal belongings. Liability protection. Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster.

	1. The structure of your house This part of your policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disaster listed in your policy. It will not pay for damage caused by a flood, earthquake or routine wear and tear. When purchasing coverage for the structure of your home, it is important to buy enough to rebuild your home. Most standard policies also cover structures that are detached from your home such as a garage, tool shed or gazebo. Generally, these structures are covered for about 10% of the amount of insurance you have on the structure of your home. If you need more coverage, talk to your insurance agent about purchasing more insurance.

	2. Your personal belongings Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disaster. Most companies provide coverage for 50% to 70% of the amount of insurance you have on the structure of your home. So if you have $100,000 worth of insurance on the structure of your home, you would have between $50,000 to $70,000 worth of coverage for your belongings. The best way to determine if this is enough coverage is to conduct a home inventory. This part of your policy includes off-premises coverage. This means that your belongings are covered anywhere in the world, unless you have decided against off-premises coverage. Some companies limit the amount to 10% of the amount of insurance you have for your possessions. You have up to $500 of coverage for unauthorized use of your credit cards. Expensive items like jewelry, furs and silverware are covered, but there are usually dollar limits if they are stolen. Generally, you are covered for between $1,000 to $2,000 for all of your jewelry and furs. To insure these items to their full value, purchase a special personal property endorsement or floater and insure the item for it's appraised value. Coverage includes “accidental disappearance,” meaning coverage if you simply lose that item. And there is no deductible. Trees, plants and shrubs are also covered under standard homeowners insurance. Generally you are covered for 5% of the insurance on the house—up to about $500 per item. Perils covered are theft, fire, lightning, explosion, vandalism, riot and even falling aircraft. They are not covered for damage by wind or disease.	Click below to create your personal home inventory with I.I.I.'s easy-to-use tool: DOWNLOAD: Free Home Inventory Software

	Liability protection Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. So, if your son, daughter or dog accidentally ruins your neighbor’s expensive rug, you are covered. However, if they destroy your rug, you are not covered. The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit of your policy. You are also covered not just in your home, but anywhere in the world. Liability limits generally start at about $100,000. However, experts recommend that you purchase at least $300,000 worth of protection. Some people feel more comfortable with even more coverage. You can purchase an umbrella or excess liability policy which provides broader coverage, including claims against you for libel and slander, as well as higher liability limits. Generally, umbrella policies cost between $200 to $350 for $1 million of additional liability protection. Your policy also provides no-fault medical coverage. In the event a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. This way, expenses are paid without a liability claim being filed against you. You can generally get $1,000 to $5,000 worth of this coverage. It does not, however, pay the medical bills for your family or your pet.	Dog Liability - Video Play with RealPlayer Play with Windows MediaPlayer

	Additional living expenses This pays the additional costs of living away from home if you can't live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt. Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20% of the insurance on your house. You can increase this coverage, however, for an additional premium. Some companies sell a policy that provides an unlimited amount of loss-of-use coverage, but for a limited amount of time. If you rent out part of your house, this coverage also reimburses you for the rent that you would have collected from your tenant if your home had not been destroyed.

HOMEOWNERS INSURANCE INFORMATION

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Homeowners insurance provides coverage in the event of damage to your property, as well as liability for injuries and damage you cause to other people. The homeowners insurance section of the I.I.I. Web site can help you make the right choices about this important form of protection for you and your family.

Q: I left my wedding ring on the bathroom sink this weekend and, from what we've been able to determine, my 7 year-old daughter was wearing it while going to the bathroom, it fell into the toilet and she flushed it. Will my homeowners policy cover any portion of it so that I can try to replace it?

A: The good news is that your ring is at least partially covered under a standard homeowners policy. The bad news is that if you did not have an endorsement specifically covering the ring--or other valauable jewelry--your coverage limit is probably $1,000-$2,000 (depending on the company), minus your deductible. In other words, the loss is covered, but the net result may or may not be worth the effort. Note that you will need to prove the value of the ring, and your insurance company may ask you to report the incident to the police, despite the fact it was not a theft.

Download the I.I.I.'s free home inventory software. Visit Know Your Stuff!

This checklist prepares home buyers with the information they need in purchasing a new home.

Video: How much do you know about homeowners insurance?

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Home insurance providers 3

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Cover Direct Home Insurance Cover Direct have a select panel of insurers including Norwich Union and Royal Sun Alliance.

Direct Choice Home Insurance Offering buildings, contents and personal possessions cover, plus legal expenses up to £25,000: you can be safe in the knowledge that your home insurance policy is with a top insurer when it is organised...

eHome Home Insurance eHome provides home insurance in conjunction with Norwich Union. Their policies are perfect for customers who wish to manage their buildings and contents insurance online for greater convenience.

elephant.co.uk Home Insurance elephant.co.uk home insurance offer quality contents and building insurance at an exceptional price.

Endsleigh Home Insurance Whether you own your own property and need buildings and contents cover or just need to protect your possessions while renting then Endsleigh can provide you with a quote for a home insurance policy to suit...

esure Home Insurance esure is part of the Halifax and Bank of Scotland group and they can provide you with a quote for buildings and contents cover.

Halifax Home Insurance Halifax Home Insurance via Confused.com. You won’t get a cheaper quote by going to Halifax direct. It may even be cheaper via Confused.com

Hastings Direct Home Insurance Hastings Direct know that your home is your castle and understand how important it is to protect it.

Hiscox Home Insurance You can get a quote for buildings, contents or combined home insurance cover from Hiscox, a company that was founded in 1901.

HomeInsurer.co.uk Home Insurance HomeInsurer.co.uk claim to be confident that they can provide their customers with the best value buildings and contents cover available at a fantastic price.

Homeprotect Home Insurance Homeprotect is part of the Webmoney brand. Buildings and contents insurance can be purchased as individual stand-alone products or as a combined policy.

HSBC Home Insurance High-street bank HSBC offers both buildings and contents cover which includes the a number of benefits.

Insure Home Insurance By taking your home contents or buildings cover with Insure, you can qualify for a 10% online discount, plus a further discount if you take buildings and contents cover together.

Insure4Retirement Home Insurance Insure4Retirement was founded in January 2004, and specialises in home insurance for the over-50s.

insurepink Home Insurance insurepink is a brand that has been developed to support women who have or have had breast cancer. For every car and home insurance policy purchased through insurepink, a donation of £10 will be made to the...

Key Connect Home Insurance Key Connect are part of Heath Lambert, Europe's leading independent insurance broker. They consistently update their panel of insurers in order to provide you with a competitive home insurance quote.

Kwik Fit Insurance Kwik Fit Insurance aim to provide you with the best home insurance price from their panel of insurers.

Lancaster Home Insurance Starting life as the insurance department of the MG Owners Club back in 1984, Lancaster Insurance Services have since expanded, and have been offering home insurance for over ten years.

Lloyds TSB Home Insurance Lloyds TSB provides buildings and contents cover, with an accidental damage option available for both.

LV= Home Insurance LV= offers buildings or contents insurance or a combined policy.

Marks & Spencer Home Insurance Marks & Spencer has two levels of home insurance cover, standard and premier, and optional extras are available for both.

N Home Insurance" style="border-width: 0px;">

MORE TH>N Home Insurance MORE TH>N offers you great quality home insurance cover, with a choice of buildings insurance, contents insurance or a combination of both.

Only Home Insurance Only insurance brings you the best quotes from a variety of home insurance providers and brokers. It aims to find you the cheapest price on the most appropriate cover for your needs.

Pearl Home Insurance Pearl home insurance policies offer a range of cover. You can choose to insure your buildings, contents, or both with Pearl – and also have the option to cover items taken away from the home.

Post Office Home Insurance The Post Office provides great value home insurance cover. You can adjust your policy to suit your requirements so you only pay for what you need.

Privilege Privilege home insurance offer peace of mind at a competitive price. They include buildings cover of up to £1,000,000 as standard to cover the cost of rebuilding your home and any outbuildings.

Privilege Platinum Privilege Platinum home insurance aims to give you enhanced cover and peace of mind at a competitive price.

Protect Your Bubble Home Insurance Protect your bubble Home Insurance via Confused.com. You won’t get a cheaper quote by going to Protect your bubble direct. It may even be cheaper via Confused.com

Prudential Home Insurance Prudential plc is an international financial services company which was established in 1848.

Quinn-direct Home Insurance Quinn-direct Home Insurance through Confused.com. You won’t get a cheaper quote by going straight to Quinn-direct. It may even be cheaper via Confused.com

Quoteline Direct Home Insurance Quoteline Direct is a home insurance broker with 35 years’ experience. They can provide buildings insurance, contents insurance or a combined home insurance policy with the appropriate price and level of cover...

Saga Home Insurance Saga specialise in home insurance products for people aged over 50.

Sheilas’ Wheels Home Insurance Sheilas’ Wheels is a brand of esure, and part of the HBOS group. In 2008, Sheilas’ Wheels launched their home insurance policy.

Swinton Home Insurance Swinton search a panel of leading insurers to bring you a great home insurance deal that comes with total confidence.

Tesco Finest Home Insurance Tesco Finest Home Insurance has been rated 5 star by Deqfaqto for its features and benefits.

Tesco Home Insurance Tesco is one of the biggest household names, and they offer three types of home insurance cover.

Tesco Value Home Insurance The Tesco Value home insurance is a no frills policy which includes the basic essentials.

Virgin Money Home Insurance Virgin has been a household name for some time now, and their money team can provide home insurance.

yesinsurance.co.uk Home Insurance yesinsurance.co.uk search a panel of 14 leading insurers to find you a great deal on your home insurance and you can take out cover for contents, buildings or both.

Zurich Home Insurance Zurich offer buildings and contents insurance as separate products or you could choose a combination of both.

Home Insurace Providers 2

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Broker King Home Insurance As a broker with strong relationships in the insurance market, Broker King is able to offer competitive home insurance quoted by the major insurers, as well as some specialist providers.

Budget Home Insurance Using a panel of 15 home insurance providers, Budget finds you the best price from its database, and aims to save you 20% on your home insurance cover.

Bullseye Home Insurance Bullseye home insurance offers a range of benefits.

Castle Cover Home Insurance Castle Cover specialises in providing home insurance for better-risk, over-50s customers.

Churchill Home Insurance Churchill Home Insurance via Confused.com. You won’t get a cheaper quote by going to Churchill direct. It may even be cheaper via Confused.com

CIS Insurance (Co-Operative) CIS (Co-Operative Insurance) offer up to £500,000 rebuilding costs cover as standard under buildings insurance, and a 7.5% discount when buildings and contents insurance are bought together.

Click Home Insurance Click insurance will obtain the best home insurance policy at the most competitive price from its panel of leading UK insurance providers.

Columbus Home Insurance Columbus is a broker who will go to more than ten leading home insurance providers to get you a comprehensive home insurance policy for a low price.

Co-operative Home Insurance Co-operative home insurance (formerly CIS home insurance) offers up to £500,000 rebuilding costs cover as standard for buildings insurance.

Cornhill Direct Home Insurance Take out both buildings and contents insurance from Cornhill Direct and you'll receive up to 10% discount on the standard home insurance rates.

Home Insurance Providers 1

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Home Insurance Providers

1st Quote Home Insurance As a long established nationwide insurance broker with over 30 years in the business, 1stQuote pride themselves on our ability to quote for any insurance risk, regardless of age or experience.

AA Home Insurance The AA offer cover for buildings and contents insurance and if you take out your policy online you’ll get a 15% discount if you are a new customer.

Admiral Home Insurance Admiral Home Insurance offers building and contents cover and a range of optional extras for complete peace of mind.

AIG Europe Home Insurance AIG Europe offers household buildings and contents insurance.

Alliance & Leicester Home Insurance Home insurance from Alliance & Leicester is provided in partnership with Zurich.

Argos Home Insurance Argos offers contents and buildings cover online and has various discounts available in order to give you a competitive home insurance quote.

ASDA Home Insurance From older properties to new builds, country homes to city centre flats, ASDA Home Insurance can have you covered.

Axa Home Insurance Buildings and contents insurance provided by AXA offers a range of policy benefits.

Barclays Home Insurance Barclays Home Insurance offers combined or stand alone buildings and contents insurance, plus you could get a 10% discount if you take both together.

Bradford & Bingley Home Insurance Taking your home insurance to Bradford & Bingley means that they will search their panel of insurers to get you their best quote for a policy that is tailored for your needs.

Home Insurance

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One search - over 50 home insurance companies

Compare Over 50 Leading Home Insurance Companies

Compare home insurance quotes from leading insurers including:

AA, Barclays, Halifax, esure, Budget, LV=, MORE TH>N, Legal & General, Post Office, Marks and Spencer, Yes, Privilege, Churchill and more!

Enter your details once - we go to their websites and get quotes
Compare the prices and features of the policies we find
Buy online, no need to enter all your details again!

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Coverages

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For each policy, there are typically six classifications of coverage. These are based on standard Insurance Services Office or American Association of Insurance Services forms.

Section I - Property Coverages

Coverage A - Dwelling: Covers the value of the dwelling itself (not including the land). Typically, a coinsurance clause states that as long as the dwelling is insured to 80% of actual value, it will be replaced. This is in place to give a buffer against inflation. HO-4 (renter's insurance) typically has no Coverage A, although it has additional coverages for improvements.

Coverage B - Other Structures: Covers other structure around the property which are not used for business, except as a private garage. Typically limited at 10% of the Coverage A.

Coverage C - Personal Property: Covers personal property, with limits for the theft and loss of particular classes of items (eg, $200 for money, banknotes, bullion, coins, medals, etc). Typically 50 to 70% of coverage A is required for contents, which means that consumers may pay for much more insurance than necessary. This has led to some calls for more choice.

Coverage D - Loss of Use/Additional Living Expenses: Covers expenses associated with additional living expenses (i.e. rental expenses) and fair rental value, if part of the residence was rented, however only the rental income for the actual rent of the space not services provided such as utilities.

Additional Coverages: Covers a variety of expenses such as debris removal, reasonable repairs, damage to trees and shrubs for certain named perils (excluding the most common causes of damage, wind and ice), fire department changes, removal of property, credit card / identity theft charges, loss assessment, collapse, landlord's furnishing, and some building additions. These vary depending upon the form.

Exclusions: In an open perils policy, specific exclusions will be stated in this section. These generally include earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, and concurrent causation (for HO-3).

Types of Homeowners Insurance

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United States

Prior to the 1950s, there were separate policies for the various perils that could affect a home. A homeowner would have had to purchase separate policies covering fire losses, theft, personal property, and the like. During the 1950s, policy forms were developed, allowing the homeowner to purchase all the insurance they needed on one complete policy. However, these policies varied by insurance company, and were difficult to comprehend.

The need for standardization grew so great that a private company based in Jersey City, New Jersey, Insurance Services Office, also known as the ISO, was formed in 1971 to provide risk information and issued a simplified homeowners policy for resell to insurance companies. These policies have been amended over the years until currently, the ISO has seven standardized homeowners insurance forms in general use:

HO1 - Basic Homeowner Policy

A basic policy form that provides coverage on a home against 11 listed perils; contents are generally included in this type of coverage, but must be explicitly enumerated.

HO2 - Broad Homeowner Policy

A more advanced form that provides coverage on a home against 17 listed perils (including all 11 on the HO1). The coverage is usually a "named perils" policy, which lists the events that would be covered.

HO3 - All Risk Homeowner Policy

The typical, most comprehensive form used for single-family homes. The policy provides "all risk" coverage on the home with some perils excepted, such as earthquake and flood.

HO4 - Renter's Insurance

The “Tenants” form is for renters. It covers personal property against the same perils as the HO2

HO6 - Condominium Policy

The form for condominium owners.

HO8 - Older Houses

The “Modified Coverage” form is for the owner-occupied older home whose replacement cost far exceeds the property’s market value.

According a 1998 NAIC report, 83% of homes were covered by owner-occupied homeowners policies. Of these, 87% had the HO3 Special and 9% had the more expensive HO5 Comprehensive. Both of these policies are "all risks" or "open perils", meaning that they cover all perils except those specifically excluded. 3% were the HO2 Broad, which covers only specific named perils. Others include the HO1 Basic and the HO8 Modified, which is the most limited in its coverage. HO8, also known as older home insurance, is likely to pay only actual cash value for damages rather than replacement.

The remaining 13% of home insurance policies were covered by renter's or condominium insurance. Two-thirds of these had the HO-4 Contents Broad form, also known as renters insurance, which covers the contents of an apartment not specifically covered in the blanket policy written for the complex. This policy can also cover liabilities arising from accidents and intentional injuries for guests as well as passers-by up to 150' of the domicile. Common coverage areas are events such as lightning, riot, aircraft, explosion, vandalism, smoke, theft, windstorm or hail, falling objects, volcanic eruption, snow, sleet, and weight of ice. The remainder had the HO-6 Unit-Owners policy, also known as a condominium insurance, which is designed for the owners of condos and includes coverage for the part of the building owned by the insured and for the property housed therein. Designed to span the gap between the coverage provided by the blanket policy written for the entire neighborhood or building and the personal property inside the home. The liability coverage may cover incidents up to 150' from the insured property, all valuables within the home from theft, fire or water damage or other forms of loss. The Associations Bylaws determine the total amount of insurance necessary.

In addition, about 2.4% of homes were covered by a dwelling fire policy which which covers property damage to a structure and is typically sold to noncommercial owners of rented houses. It may also cover the owner's personal property (such as appliances and furnishings). The owner's liability is generally extended from their own primary home insurance, and does not comprise part of the Dwelling Fire policy.

Home insurance

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Home insurance, also commonly called hazard insurance or homeowners insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home. It requires that at least one of the named insured occupies the home. The dwelling policy (DP) is similar, but used for residences which don't qualify for various reasons, such as vacancy/non-occupancy, seasonal/secondary residence, or age. It is a multiple line insurance, meaning that it includes both property and liability coverage, with an indivisible premium, meaning that a single premium is paid for all risks. Standard forms divide coverage into several categories, and the coverage provided is typically a percentage of Coverage A, which is coverage for the main dwelling.^[1]

The cost of homeowners insurance often depends on what it would cost to replace the house and which additional riders—additional items to be insured—are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events. Typically, claims due to floods, or war (whose definition typically includes a nuclear explosion from any source) are excluded. Special insurance can be purchased for these possibilities, including flood insurance. Insurance must be updated to the present and existing value at whatever inflation up or down, and an appraisal paid by the insurance company will be added on to the policy premium. Fire insurance will require a special premium charge, plus the addition of smoke detectors and on site fire suppression systems to qualify.

The home insurance policy is usually a term contract—a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to a fire station, if the house is equipped with fire sprinklers and fire alarms. Perpetual insurance, which is a type of home insurance without a fixed term, can also be obtained in certain areas.

In the United States, most home buyers borrow money in the form of a mortgage loan, and the mortgage lender always requires that the buyer purchase homeowners insurance as a condition of the loan, in order to protect the bank if the home were to be destroyed. Anyone with an insurable interest in the property should be listed on the policy. In some cases the mortgagee will waive the need for the mortgagor to carry homeowner's insurance if the value of the land exceeds the amount of the mortgage balance. In a case like this even the total destruction of any buildings would not affect the ability of the lender to be able to foreclose and recover the full amount of the loan.

The insurance crisis in Florida has meant that some waterfront property owners in that state have had to make that decision due to the high cost of premiums

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Section I - Property Coverages

Types of Homeowners Insurance

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HO1 - Basic Homeowner Policy

HO2 - Broad Homeowner Policy

HO3 - All Risk Homeowner Policy

HO4 - Renter's Insurance

HO6 - Condominium Policy

HO8 - Older Houses

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