What is Homeowners Insurance?
Homeowners insurance, just like the name says, is insurance for your home. It can protect you from things like fire, wind, lightning, theft, and even your roof collapsing because of the weight of snow. Your homeowners insurance policy includes: dwelling coverage, personal property coverage, liability coverage and even medical coverage.
What is the difference between types of homeowners insurance?
There are different types of homeowners insurance. The most common ones are referred to as HO-3 and HO-5 policies.
HO-3: Special Form. This is the most common policy for home insurance. This policy is an open peril form that covers everything except what is specifically excluded.
HO-5: Comprehensive form. Here at Pinnacle Insurance we fondly refer to an HO5 policy as an “HO3 on steroids”. It expands on the coverages of an HO3 policy, and has a lot of benefits. The biggest benefit is that the contents of the home are covered on an open peril basis, instead of named peril. This is often the best coverage you can get.
There are other insurance policies related to homeowners insurance that cover you if you live in a condominium, rent an apartment or a house.
HO-4: Renters Insurance. Covers personal property and liability of tenants, but does not cover the dwelling itself.
HO-6: Condo Insurance. This type covers your personal belongings and your specific unit, but not the entire building.
We want to mention one more type of policy – Dwelling fire policy. This policy is for those who have rental/investment properties. It covers the structure, but doesn’t cover the personal property of tenants.
How can I save money on my insurance?
There are several ways to save money on your home insurance. The first thing anyone can do to save money is to get educated. The National Association of Insurance Commissioners gives a short, but very good list of the 10 things you should know about purchasing home insurance.
The easiest and best way to save is to bundle your homeowners insurance with your car insurance. You will still have 2 separate policies, but most insurance companies will give you a discount on both. Another great way to save is to shop around. At Pinnacle Insurance we represent over 30 insurance companies. This allows us to do the insurance shopping for you. We strive to find you a great policy that fits your needs, while still keeping costs low.