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Know what coverage you’re afforded by different home insurance types before buying. Insurance should give us peace of mind, but with how complicated and specific policies can get, it’s always clear if you’ll be protected from surprises. Texas residents need to be especially mindful of the different home insurance types and what protections they afford.

HO-1: Basic Coverage

TheHome Insurance most basic type of home insurance is called HO-1. In many states, it’s not legal to sell because the coverage is considered too narrow, but confident Texas homeowners can use it to save a bit of money. Here’s what it covers:

  • Windstorm
  • Hail
  • Fire or smoke
  • Lightning
  • Theft and mischief
  • Theft
  • Civil commotion and riots
  • Aircraft and vehicles

Seems broad enough, right? Here’s one of the big issues with HO-1: it doesn’t, by default, cover your possessions. You might have to buy a specific HO-1 and individually specify which items you want to protect. Another problem is the lack of any water-related coverage. Adding these onto an HO-1 might make it more expensive than some broader policies.

HO-2: Broad Coverage

HO-2 gives policyholders a slightly larger range of potential home insurance claims. While still covering all of HO-1’s bases, it also adds coverage for:

  • Falling objects
  • Snow, ice, sleet
  • Flooding caused by appliances, plumbing, HVAC, sprinklers
  • Artificial power surges
  • Broken glass
  • Abrupt collapse

Though this is a different home insurance type, there’s one rule it shares with HO-1: the list of protections you buy is exhaustive. If you have HO-2 coverage and your home is damaged by a flooding river or ocean, for example, you will not be able to make a home insurance claim.

HO-3: Special Coverage

Special-type coverage is the most common type because it covers most foreseeable issues. Unlike HO-1 and HO-2, HO-3 is inclusive, meaning that if you don’t see it on your policy, chances are you are covered for it. This type of home insurance policy will typically name the things for which it won’t cover you.

 

Based in Dumas, Texas, CIS Insurance has insured thousands of homes in its 25 years. As a local business, they’re familiar with the challenges faced by North Texas homes, whether they’re just residential or agricultural. Call them today at (808) 935-6512 or visit their website and they’ll craft a plan that works for you.  

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