Homeowners Insurance in Winston-Salem, NC
Your home’s features, location and other factors determine what kind of homeowners insurance policies best match your situation as well as your rates. Explore the topics below to better understand which types of homeowners insurance policies are available and how premiums are calculated.
Understanding the Different Types of Homeowners Insurance Policies
The following are the eight different types of homeowners insurance policies:
- HO-1—This is a single-family homes’ most basic and limited policy. This type of policy is almost nonexistent today because it typically doesn’t meet the coverage standards mortgage lenders require.
- HO-2—This policy covers your home and personal belongings on a named perils basis, which means it only covers damage caused by a peril specifically listed in the policy.
- HO-3—This is the most common type of homeowners policy. It covers your home’s structure on an open perils basis, meaning it covers damages from perils unless they are specifically excluded. It also offers coverage for your personal belongings on a named perils basis and liability in the event of third-party damage or bodily injury. Additionally, it typically covers extra living expenses and offers protection for other structures on your property on an open perils basis.
- HO-4—This policy type covers renters and is usually called renters insurance.
- HO-5—This is the most comprehensive form of homeowners insurance and the second most common policy type for single-family homes. It covers damage to your home, other structures and personal property on an open perils basis and offers higher coverage limits for personal property.
- HO-6—This is a coverage designed for condo owners.
- HO-7—This type of policy is for mobile or manufactured homes.
- HO-8—This is a specific type of policy for older homes that may not meet the standards for other policy forms.
Factors That Affect Homeowners Insurance Rates
Many factors affect your homeowners insurance rates, including the following:
- Amount of coverage
- Cost to rebuild
- Location of your home
- Attractive nuisances, such as a trampoline or swimming pool
- Claims history
- Distance from a fire hydrant or fire station
- Amount of deductible
- Condition of the roof
- Age of the home
Flood Insurance for Homeowners: What You Need to Know
Most standard homeowners insurance policies do not cover flood damage. To receive coverage for this peril, you should consider flood insurance. Your mortgage lender might even require it if you are in a designated flood zone. Flood insurance typically offers the following coverages:
- Building property coverage may help cover the physical structure of your home and its foundation; plumbing and electrical systems; central air and heating systems; and attached bookcases, cabinets and paneling in the event of a flooding incident.
- Personal contents coverage may help protect clothing, furniture and electronics damaged due to a flooding incident.
Homeowners Insurance Quote in Winston-Salem, NC
If you want to learn more about homeowners insurance, contact All Good Insurance. We will be able to help you find the coverage to protect you financially and provide peace of mind.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.