An HO-1 basic home insurance policy is considered the base policy upon which all other home policies are written. It is however not necessarily a stand-alone policy that you can purchase. Most companies have stopped issuing just an HO-1 policy. The companies have found that the HO-1 policy doesn’t meet the needs of homeowner’s claims appropriately. The policy does cover eleven separate perils, but doesn’t go far enough in protecting the needs of a homeowner.Perils, by definition, are those things that give rise to a loss in an insurance policy. The eleven most common perils which give rise to losses or incur damage include the following: fire, storms, theft, windstorm, hail, lightning, explosion, vandalism or malicious mischief, damage by vehicles, aircraft and riots. Some of the perils it does not guard against: flood, and earthquake, and in some policies, sinkholes. Note that the coverage is a base coverage; it will pay to replace within the limits of the policy, your home’s structure. Remember this excludes contents. So whether you own grandma’s Victrola, or if you have a house full of renaissance art work worth millions, it wouldn’t pay to cover anything within the home. Nothing would be covered, not even down to your toaster, or the clothes in your closet. This would obviously be financially devastating for most folks.Everyone, of course wants to save money, but everyone also wants to be indemnified, or made financially whole, should something catastrophic occur. The HO-1 policy has been expanded to the following homeowners insurance policies, among them are HO2, HO3, HO4 (renters) and HO6; this allows you to get the maximum coverage you need for the type of home that you are covering.Getting a quote for homeowner’s coverage will take several things into consideration; whether you get a quote over the internet, or the phone, or by talking to an agent in person. The online forms can be rather exhausting, and may not be setup to cover all the things in your home that may need coverage for; Keep that in mind if you want to go the alleged easy way. Often insurance agents are often thought of like the character Ned in the movie Groundhog Day. But they are actually trained persons who have your best interest at heart. They are going to be able to advise you about potential additional coverage that automated forms will not. For instance, if you have a diamond engagement ring that is worth more than $2500 you will probably want an additional rider that will cover that ring if it is lost or stolen or if the setting gets loosened and you should lose the stone.How you end up being rated for your policy, and by rated we mean charged for insurance, will depend on several factors. Some states allow credit rating to be used for statistical purposes. Lower credit rating will cause higher insurance premiums. If you’ve had a bankruptcy, your rate could even triple in those states. Great credit, you premiums could be lower. The reason is that statistically, persons with lower credit rating have a higher amount of claims.Here are some other factors that can have an effect on your policy rating: whether or not you have a municipal fire squad or one that is voluntary. And if you have a municipal fire squad, its training and the infrastructure of your municipality can even have an effect. Whether your home is built of wood or concrete will also create a difference in your policy amount, as will having an actively monitored burglar alarm.The amount you are rated ends up being your premium, or payment. Your rating premium can vary from State to State, and county to county, as well as city to city. Even neighborhoods within a city may have different pricing depending on statistics of claims.A home is one of the most long term, and largest investments any person will have. Home owner’s insurance is one of the best ways to guard against financial ruin should a catastrophe happen. It is required by all lenders if your house is being financed, and even if you have a large amount of cash reserves, it’s a fiscally sound way to prevent financial ruin. Make certain that your policy, and your insurance agency or agent, gives you the amount of insurance you need to rebuild your home should disaster strike. You may be able to get a lower policy price by combining additional policies such as your home and auto policy. If you want to get a quick quote to give you an idea of what it costs to insure your home, or one you are about to buy, go to http://www.homeinsuranceinsurance.com and begin your savings and insuring today.
