The HO2 Home Insurance Policy is considered a middle-of-the road insurance policy in the United States. It provides good coverage for both the home and personal property.
HO2 Home Insurance Policy
HO2 Insurance Policies Cover Named Perils
The HO2 insurance policy is a named perils insurance policy. This means it covers your home (dwelling) and all the stuff you own (your personal property) for damage caused by perils that are named – or listed – in your policy.
If an event causes damage to your dwelling or personal property, and that event is listed in your policy as being a covered peril, good news: it’s covered under the policy!
HO2 Insurance Named Perils List
The H02 insurance policy lists 16 perils as named perils. The following list shows what is considered a named peril in a standard HO2 policy:
Three of the named perils above are only covered if the damage is caused as a result of a sudden and accidental event. Those are (1) the discharge and/or overflow of Water or Stream, (2) Cracking, Bulging, Burning or Tearing Apart, and (3) Artificially Generated Electrical Current.
Other than that, if a peril from the list above damages your stuff, the HO2 insurance policy should cover it.
HO2 Insurance is Usually Replacement Cost
The HO2 home insurance policy is normally written as a Replacement Cost policy rather than an Actual Cash Value policy.
Replacement cost coverage simply means that if anything needs to be replaced, it will be replaced with brand new materials at today’s cost, regardless what the material was worth at the time it was destroyed.
For example, if your house burns down, replacement cost policies should cover the home to be rebuilt with brand new lumber at today’s prices.
Actual cash value policies depreciate the value of the material that was damaged before paying out on claims. This means you could be hit with a substantial payout.
While HO2 insurance policies are typically replacement cost, be sure to check with your agent before moving forward with this policy.
Home Policy Comparison - Baseline HO2
