Homeowners Insurance

The coverage you have depends upon the type of policy you have. Unlike auto insurance, where the policies are pretty much the same, homeowners policies can be quite different, depending on the “form” number. The most common types of homeowner policies are:

  1. HO1 Basic or Standard policy
  2. HO2 Broad form
  3. HO3 Special (also called Deluxe, All Risk)
  4. HO4 Renters policy
  5. HO5 Enhanced Special Coverage
  6. HO6 Condo policy
  7. HO8 Older Home Policy

All homeowner policies are “package” policies. You get a group of coverages packaged into your policy for one overall premium. They include coverage on your building, your contents (furniture, clothing, etc.) and liability insurance in case you are sued, under the same policy. The property coverage is shown under Section 1, while the liability coverage is described under Section 2.

There is no better way to understand your homeowner policy than to read it! We suggest you pull out your policy and find the parts to your policy that correspond to the following explanations:

A typical policy consists of three things:
1. The Declarations Page – that declares who, what and how much you are insuring, along with the date your coverage starts and the premium.
2. The Policy Booklet – printed pages that contain the details of coverages and exclusions.
3. Endorsements – separate pages, usually with endorsement numbers, that change (or endorse) specific parts of the policy.
Sometimes you are only given the original policy once in the beginning, then on renewal, to cut down expenses, you are just sent the dec. page (declaration page) with the bill. It’s a good idea to save the original policies should you ever need to refer to them.

More Detailed Information:

The HO1 policy is very limited in coverage and is not being sold by most companies.
The HO2 policy covers the basic perils of fire, lightning, explosion, smoke, hail, aircraft, riot, glass breakage, theft and damage caused by vehicles. It also adds additional coverage to broaden your policy. Those perils include damage caused by rupture of your water or heating pipes, falling objects (such as trees), collapse of the building, limit electrical damage to appliances and others.

The HO3 policy is, by far, the most commonly sold policy. It covers everything the HO2 policy covers and more. Instead of listing the perils that are covered these policies cover all damage to the building except what is excluded. The usual exclusions are: wear and tear, termites, rotting, collapse of septic tank, flood, war, earthquake and a few others.

Some HO3 policies are referred to as “Deluxe” , “Special” , “All Risk” policies depending upon the company.

Most policies cover your contents or belongings only for the perils named in an HO2 policy so wear and tear and normal breakage is not covered for your furniture and personal belongings.
Be careful! Your homeowner policy limits coverage on some items.

To keep the cost of insurance down your policy probably has limits on certain items. Typical limits are:

  • Cash – $200
  • Jewelry – $1,000
  • Firearms – $2,500
  • Silverware – $2,500

Check your policy carefully. If you see you don’t have enough coverage, find out how much it would cost to increase those limits or to buy special coverage.

Optional Coverage
In addition to special coverage for jewelry, silverware and furs, you can purchase specific coverage for such possessions as stamp or coin collections, fine arts, camera equipment, collectibles, watercraft and musical instruments, just to name a few.


Aubrey Cook sells homes to first-time buyers in Colorado Springs, Colorado. She has seen her fair share of home buying and selling nightmares. Including what happens when a homeowner doesn’t have the right insurance. For example, someone contacted Aubrey to start the process of selling their home. But they’d just dropped their home insurance so they could save a little money each month. Unfortunately, their home had a bad roof. Aubrey had to deliver the kind of news no homeowner (or seller) wants to hear: I can’t sell your house because you don’t have insurance.

Beyond bad roofs, there are many reasons homeowners need to protect themselves with the right coverage. For example, if you don’t have insurance and your lender finds out, they could either force you to find new coverage or put your loan in default which means you risk losing your home.

Live in a place that experiences natural disasters? Having the right coverage means you can worry less about things like storm damage, hail, flooding, and more. Or perhaps you have a pool. You’ll want to invest in extra coverage in that case. If someone were to injure themselves on your property, the right home insurance can cover that injury. And in the incredibly unfortunate event that your home is robbed, insurance can help pay for broken or missing items.

There are so many reasons to find the right homeowner’s insurance. The first step is to find a provider that will work closely with you and your concerns so that you feel safe and protected in one of the most important places: your home.

Number 1 Insurance works with all kinds of homeowners across the Huntington Beach area of California. We know how to uniquely serve our customers in this area and are familiar with protecting for a variety of issues including pools, expensive properties and possessions, wildfires and other natural disasters, as well as the kind of protection suitable for buying and selling homes.

Whether you are looking to buy, sell, or find new, customized homeowner’s insurance, give us a call today.

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