Ask the Home Insurance Expert
QWhat is HO-6 insurance?
There are several types of home insurance policies. HO-6 is home insurance for owners of co-ops or condominiums. It providers personal property coverage, liability coverage and specific coverage of improvements to the owner's unit. Typically the owner's condo or co-op association provides insurance that covers the outside of the structure.
Other types of home insurance include:
This type of policy has been discontinued in most states. It's a basic policy that covers the house and the owner's possessions against 10 perils.
This is a broad home insurance policy that covers the house and contents against 16 perils.
A special homeowners policy, this one covers all perils except those specifically excluded by the policy.
Renters insurance covers belongings against 16 perils and includes liability coverage, but does not insure the dwelling.
This type of policy covers old homes against the same perils as an HO-2 policy, but it pays only for repair costs or actual cash value. It's well suited for older homes whose market value is significantly less than the cost to rebuild them. A policy that would pay for replacement cost of an old home would have higher premiums than an HO-8 policy.
The Insurance Services Office (ISO) defines the terms of standard home insurance policies, so standard coverage doesn't vary much from one company to the next, but rates and customer service do, so it's important to shop around for insurance quotes from at least three different companies.
Don't rely on coverage levels mandated by banks for mortgage customers. Those are designed to protect the house, but not necessarily your possessions. Consider extra coverage for valuables, such as jewelry, fine art or fancy computer equipment. Depending on where you live, you might also need additional coverage for earthquakes, flooding or windstorms. Check with your insurance agent or insurance company to make sure you have the right amount of coverage.
To learn more, read about home insurance basics.