When you purchase a home it is one of the largest single investments you will ever make. To protect your financial investment, it is important to ensure your home stays protected. This is where insurance comes into play.It’s property and casualty insurance contract that will provide coverage to repair or replace your home in the event it is damaged by a covered loss. Contrary to popular belief, not all policies provide coverage for the same risks and exposures. You will need to do your homework to understand how various insurance contracts work. Once you find a policy that suits your needs, you can make an informed decision when investing in protection.

H0-2- Limited Perils

Home insurance companies refer to disasters as perils. An HO-2 home insurance policy will provide coverage for perils that are specifically listed in the terms and conditions of the contract. While this is the least expensive type of home insurance available in California, it is also very limited. The most common perils covered on an HO-2 policy include fire, lightning, explosion, hail, and civil riot. If you have an HO-2 policy it is important to review the items listed to see if you are leaving yourself at-risk for a claim that is not covered.

HO-3- Open Perils

If you are looking for a home insurance Orange County policy that will provide coverage that is more extensive for your home, consider investing in an HO-3 policy. HO-3 insurance policies offer open peril protection. This means that the policy will provide coverage for all direct physical losses except for disasters and perils that are specifically excluded. The most common types of exclusions for an open peril policy include damage caused by: earthquakes, floods, war, neglect, intentional acts, nuclear accidents, power failure, and failure to comply with code laws. HO-3 home insurance policies provide coverage that is more comprehensive for higher premiums.

HO-5- Open Perils and More

An HO-5 This policy is the most comprehensive policy on the market. This home insurance plan will offer the same open perils coverage provided by the HO-3 form, however, open perils will extend to cover both the property and personal property found in the home. Some HO-5 policies will also include extended replacement cost to cover inflation.

This insurance Orange County provides coverage for the main dwelling, other structures, personal property, loss of use, and the owner’s personal liability. When you build a home insurance policy to protect your property and your assets, it is important to understand what you are investing in. Compare various home insurance forms and coverage limits to make the best investment in protection. When you purchase a comprehensive policy you are investing in protection as well as peace of mind.

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