Homeowners Insurance is a multiline policy which means it has two parts to it. One covers the dwelling, which is the property you use, and the other is liability, which is used in case someone gets injured because of the insured’s negligence. There are six types of homeowners policy: HO-2, HO-3, HO-4, HO-5, HO-6 & HO-8. HO-8 is not available in CT but it is still offered in various states. It covers the least amount of coverage. The most common homeowners policy is HO-3 which is also known as special form. It offers protection against all perils (open peril), except flood and earthquake for your home. Your personal property is covered on a named perils basis which means you have to state which disasters would cover the damage.
The HO-5 policy, also known as comprehensive policy, is the best policy available for homeowners. It provides open peril coverage for both dwelling and personal property. In other words, your home and personal belongings are covered against all listed perils such as hurricane, hail, wind, theft, etc. As the protection goes up, so does the premium but in the long run, it is safer to have the HO-5 policy because you never know when disaster can strike and you want to be fully covered so you don’t face more problems than you have to.
If you would like to know whether your current policy is the right choice for you or would like to get a new quote on a better policy, don’t hesitate to give us a call at 860 684 2721 or visit our website.