The house is one of the primary needs in life. The home is not just a shelter, but also a place where our memories begin. No wonder if there is an adage which says “Home Sweet Home.” I believe, you will do everything to protect you house. Well, the most common way to protect our property is by joining home insurance. Here are several things that you should know about home insurance?

What home insurance is?

Home insurance or also known as hazard insurance or homeowner’s insurance (often abbreviated in the real estate industry as HOI) is categorized as property insurance. It is cover when something happen to your private homes.

Types of home insurance

ISO (Insurance Services Office) has been standardizing the home insurance into 7 forms. Here are:

1. HO1

This type is called Basic Form Homeowner Policy. It will cover your home from 11 perils, such as fire or lightning, windstorm or hail, vandalism, etc.

2. HO2

The second type (also known as Broad Form Homeowner Policy) is little bit in advance since it is covering 17 perils (all HO1 perils ‘named perils,’ lists of the events that would be covered).

3. HO3

This form is oftenly called Special Form Homeowner Policy, and it could be the most used form by single-family homes. This type of insurance offers ‘all risk’ policies, which some perils excluded.

4. HO4

Renter’s Insurance, from its name, you can guess if this insurance is for renters. It covers the same perils which can be found on above types (exception for HO2).

5. HO5

Premier Homeowner Policy is the advanced level of HO3. Yup, because in addition to HO3 coverage, it is offering some more.

6. HO6

This type of home insurance is only for condominium owners. That is why it is called ‘Condominium Policy’

7. HO8

Older House or named ‘Modified Coverage.’ This type is specialized for the owner-occupied older home whose replacement cost far exceeds the property’s market value.

How to choose home insurance?

With so many different types of home insurance policies available, it can be daunting choosing the right cover for your home. Well, we are trying to help you to choose the best one.

First of all, you should learn what is covered. It is important since most people don’t notice that. The types of home insurance above may give you a little bit about the insurance coverage.

Secondly, beware with the upselling mortgage broker. Don’t be so easy to take home insurance from the banks or building societies, because usually you have to pay more. It would be better if you do the research.

The third key to choose home insurance is estimation. Before you take the policy, be sure that your estimation is accurate for both the re-build cost of your home and the replacement cost of all the contents you had.

Don’t forget to pay attention on annual increase. Generally, insurance company will increase the police from year to year. It could be caused by the re-build cost which also increase. However, don’t be hesitate to ask more details if you don’t understand.

The last but not least, pay attention on your home content’s true value. Keep an up to date of revaluation of your home and the content.