A home insurance policy will be one of the most important purchases a homeowner will ever make. However, buying Homeowners Insurance in Massachusetts can also be very confusing. Understanding a little bit about the different policies available to you will help ensure a smoother, more pleasant shopping experience.
More Than One Type Of Policy
There are actually several types of Homeowners Insurance in Massachusetts. The availability of some policies depends on location; not every policy is available in every market. As you’ll see, some of these policies are specific to certain kinds of dwellings. Here are the basics of the six types of home insurance you’re mostly likely to shop for.
- HO1 (Basic form home insurance): This policy is lesser used than others and is not available in every market area. It covers eleven perils that are specifically named in the policy.
- HO2 (Broad form home insurance): This type of policy covers all the eleven perils listed in the HO1 and an additional six. This more comprehensive policy is favored by many customers.
- HO3 (Special form home insurance): The most common type of Homeowners Insurance in Massachusetts. This policy provides all-risk coverage which includes all the risks named in HO1 and HO2. Some exclusions may apply so talk with your insurance agent for details.
- HO5 (Premium homeowner policy): Also known as an open peril policy. Unless a risk is specifically excluded by this policy, full coverage exists.
- HO6 (Condo owner policy): Contains protections similar to HO3, though applies specifically to condominium units.
- HO8 (Older home policy): If the replacement cost of an older home exceeds the property value then a homeowner may qualify for this policy.
The Right Coverage
As you can see, the coverage available to you depends on the policy you choose. An insurance agent will be able to help you assess your home’s specific coverage needs.