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November 1, 2019

Home Insurance 101


Contact: Amanda Edmunds

& E Insurance Agency


[email protected]

What is Home Insurance?

Homeowner’s insurance is a necessity, not a luxury. This insurance covers you in the event that you lose your home or your home gets damaged. It also covers personal liability for any damage or injuries caused by you or your family (which includes your pets.) Policies offer as little as $100,000 though most experts recommend having at least $300,000 worth of coverage as these policies help you prepare for the worst even though you’ll be hoping for the best.
And the cost for $500,000 to as much as $1 million is just a few dollars more.

Types of Coverage:

  • HO-1 Basic Form

HO-1 is the most simple form of home insurance, so basic that it is hardly seen anymore. It covers fire or smoke, explosions, lightning, hail or windstorms, theft, vandalism, damage from vehicles or aircraft, riots or civil commotion, or volcanic eruption.

  • HO-2 Broad Form

This broad form of home insurance covers everything that HO-1 does including: falling objects, damage from the weight of ice or snow, freezing of household systems like AC or heating, sudden and accidental damage to pipes and other household systems, accidental overflow of water or steam, sudden damage from electrical currents, or your damage to your personal belongings.

  • HO-3 Special Form

This is the most common form of home insurance because it covers any damage to the structure of your home and your belonging rather than solely for specific incidents.

  • HO-5 Comprehensive Form

This is the most comprehensive form of home insurance. It covers sudden and unexpected events however you can decide your coverage limits.

Why Do I Need It?

Your home is one of your most valuable assets. Homeowner’s insurance is generally required by your mortgage lender, though it’s not a state requirement. There are dozens of reasons why you ought to ensure your home. Besides protecting your home from loss in the event of wind damage, fire, vandalism, tornadoes, hurricanes, and thunderstorms, repairs are also covered.
Home insurance covers your personal belongings as well, no matter where you go, and includes furniture, electronics, appliances, clothing, and more. Homeowners insurance generally includes temporary housing in the event of a disaster and provides you with peace of mind.
Generally, the following things are covered by homeowner’s insurance:

  • Property Damage
  • Personal Property
  • Loss
    Personal Liability
  • Added Living Costs
  • You and Your Family
  • Your Guests

What’s Not Covered?

Some events are excluded from homeowner’s insurance policies like natural disasters and acts of God or war. As a result, a standard HO-3 homeowner’s insurance policy does not cover earthquakes or floods. Make sure that you take the time to shop around for policies that suit your needs — especially if you live in an area that’s prone to natural disasters. Rider insurance, which adds or amends coverage to your policy, comes at an additional cost but leaves you safe rather than sorry.0

This web site may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advice.

You may wish to consult a competent attorney, tax advisor, accountant, or your own financial advisor. EMC Insurance Agency & Financial Services LLC dba I & E Insurance Agency & Financial Services is an Independent Insurance Agency, a Member of the Trusted Choice, Independent Agents of America & PIA contact your own advisors before making any financial decision. Services offered through independent NON-AFFILIATED ENTITIES

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