Florida is one of the best places to live, but it can also face many different hazards each year. Finding the right homeowner’s insurance that best matches your needs and budget is important in giving you peace of mind. Working with an insurance agency can help you choose from a variety of insurance carriers to ensure you get the best coverage for your situation. Understanding the different types of coverages that are available for homeowners is also key to ensure you are well-prepared at all times.
Here is an overview of the different types of insurance policies that are available for homeowners in Florida.
HO-1 — Basic Form
An HO-1 policy is a named peril plan that’s the most basic type of homeowner’s insurance. Anything that happens outside of the listed perils isn’t covered in the policy, as it only covers 10 perils. These perils include hail and windstorms, fire or lightning, explosions, smoke, riots, damage from aircraft, damage from vehicles, theft, vandalism, and volcanic eruptions. Many home insurers do not carry HO-1 insurance due to the limitations of the plan, and other policies offer more coverage while only being slightly more expensive.
HO-2 — Broad Form
An HO-2 policy is a much broader type of home insurance that provides more coverage than an HO-1 policy. Using this policy will cover your home at its replacement cost and your personal property at its cash value. An HO-2 will often cover personal belongings, and some of these policies will offer coverage for personal liability. Additionally, HO-2 policies will provide coverage for six additional perils, including:
- Weight of ice, sleet, or snow
- Accidental overflow or discharge of water
- Falling objects
- Freezing of household items – AC or heating system
- Sudden and accidental damage due to artificially created electrical current
- Sudden and accidental cracking, burning, tearing, or bulging of pipes and other types of household items
HO-3 — Special Form
An HO-3 is the most common type of policy used for single-family homes. HO-3 policies differ from the previous two types of home insurance in that it’s an open-peril policy instead of a named-peril policy. In other words, the policy will cover any type of peril unless it’s listed as an exclusion. A few of the most common exclusions include neglect, intentional loss, power failure, war, mechanical breakdown, and rust.
Most HO-3 policies will cover the structure of the home and any attached structures, such as a garage or carport. The policy will also offer coverage for personal liability and personal belongings. Typically, most insurers will exclude flooding and earthquakes on HO-3 plans while offering coverage for these apart from the main policy.
HO-5 — Comprehensive Form
An HO-5 policy is the most comprehensive type of homeowner’s insurance. Similar to an HO-3, it is also open-peril, and it will cover anything that isn’t excluded from the insurance policy. However, there are a few important differences between these policies. For example, an HO-5 policy offers open-peril coverage for your personal belonging and the structure of the home.
After processing a claim, an HO-5 will pay out the replacement cost of the covered items, while an HO-3 will only replace the actual value of the item. An HO-5 policy has a bigger limit of coverage for expensive types of property, such as jewelry, fine furs, and some electronics. These policies are often more expensive than an HO-3, and not all homes are eligible for this policy.
HO-7 – Mobile Home Form
Mobile home insurance is similar to an HO-3 policy, except it’s designed solely for mobile homes, which are unable to be covered with a normal single-family home policy. A few examples of the most common types of mobile homes covered under this policy are single-wide and double-wide mobile homes, trailers, fifth-wheel trailers, travel trailers, sectional homes, RVs, and modular homes.
HO-8 — Older Home Form
HO-8 policies are often used for homes that are four decades old or older. Similar to HO-1 and HO-2 policies, an HO-8 uses named-peril policies. This type of homeowner’s insurance often covers dwelling, liability, personal property, and loss of use due to named perils. These named perils are the same as an HO-1 policy. Older home policies often use the cost of common construction for paying out a claim. Many historic houses and landmarks carry this type of insurance policy.
Benefits of Working With a Local Insurance Agency
Choosing to work with a local insurance agency offers many benefits and is a great way to find the best homeowner’s insurance to meet your needs. An independent insurance agent gives you a list of all your available choices, and they have a legal obligation to always keep your best interests in mind.
Instead of comparing numerous insurance carriers on your own, an insurance agency will handle this task for you, which saves you a lot of time and effort. Using a local insurance agency in Volusia County makes it easy for you to reach out to them if you have any questions, whether you prefer to visit their office or give them a phone call.
Contact Wellcovered Insurance to Learn More About Homeowner’s Insurance
Wellcovered Insurance is one of the leading insurance agencies working with clients throughout Volusia and Seminole County. Our experienced team partners with the top insurance carriers in Florida to help you choose the best homeowner’s insurance coverage at an affordable price. We also provide personal lines insurance for automobiles, boats, condos, motorcycles, RVs, and rental property.
Offering the best customer support is always a top priority at Wellcovered Insurance, as we will provide you an auto quote in less than 15 minutes, and it usually takes only one to two business days for you to receive home quotes.
Staying active in the local community is another main focus at Wellcovered Insurance, as we are a member of the Deland Breakfast Rotary and we are also a member of the West Volusia Regional Chamber of Commerce.
Feel free to contact Wellcovered Insurance today to learn more about homeowner’s insurance in Florida!