Understanding Homeowner’s Insurance – HO2

At Longevity Brokers, we are proud to offer quality insurance policies at an affordable price. As a company, we are pleased to provide affordable auto insurance coverage, life, and homeowner’s insurance to the Denver area. With our customers, we like to help them make smart, informed decisions for their insurance needs. One of the least understood insurance products is homeowner’s insurance. In this article, we will explain the coverage and advantages of a HO2 homeowner’s insurance policy.

Homeowners insurance is one of the best things you can buy to protect your most valuable asset, your home. Your home is more than just an investment. It’s a roof over your head. It’s where you gather around the dinner table to enjoy delicious meals with your family and share memories that will last a lifetime. What would happen if something tragic were to happen to your home?

You aren’t legally required to have a homeowner’s insurance policy, but that doesn’t mean you shouldn’t get one. If a disaster were to strike your home, you probably wouldn’t have enough money in the bank to replace everything you own.

HO2 Homeowner’s Insurance

Although a lot of people don’t know it, there are several types of homeowner’s insurance. Each of the different plans covers a variety of circumstances, the lowest amount of coverage is the HO1 plan, which is also the cheapest. If you’re looking for more coverage than the HO1, then HO2 might be perfect for you.

HO2 covers all of the same perils as HO1 plus a few others. With an HO2 policy, you’ll have basic coverage from:

  • Fires
  • Lightning
  • Damage from wind
  • Hail storms
  • Explosions
  • Theft/Vandalism
  • Smoke
  • Damage from vehicles or aircraft
  • Volcanic eruptions
  • Falling objects

This is all of the coverage that is offered by both HO1 and HO2, but HO2 has additional coverage that isn’t offered by the basic plan.

  • Damage from electrical appliances and fixtures
  • Damage from water heaters or appliances using heated water
  • Damage from the weight of snow or ice
  • Damage from plumbing or A/C leaks
  • Freezing

As you can see, the HO2 plan offers a lot more coverage than it’s lower counterpart. Because a lot of people are worried about damage from water heaters or electrical appliances, a lot of homeowner’s decide to go with the HO2.

What Impacts your Homeowners Insurance?

There are a lot of things that go into calculating what you’ll pay in homeowner’s insurance premiums. Some of them you can change, and some you can’t. Understanding the factors that impact your premiums can help you get the lowest rates possible.

One of the biggest factors that will affect your premiums is the age of your house and its features. Typically, the older your home is, the more you’ll pay in monthly premiums. Older homes tend to have more problems like faulty wiring or structure problems. Because newer homes have improved features, they tend to be much safer, which equals lower premiums.

What your home is made of or covered by also will change your monthly premiums. Is your house brick or stone? Does it have vinyl siding? All of these are going to have different monthly premiums.

Aside from the features of your house, where your home is located will also make a difference. If you house is in a region that is more prone to natural disasters like flooding or earthquakes, expect to pay more for your policy. Similarly, if you house is in a neighborhood with a higher crime rate, you’ll pay more every month. While you can’t really change where your house is located, it’s important to know that it can have a huge impact on your policy.

There are a few things that you can control. One of those is your security and safety devices inside of your house. Having an alarm system, deadbolts, smoke detectors, etc. can lower your homeowner’s insurance fees every month. Most of these can be installed pretty cheaply and are a great investment.

A few of your lifestyle choices could also cause your policy to go up. Things like the breed of dog you own or smoking can also make you pay more every month for keeping your home safe. Certain breeds of dogs, like Great Danes, pit bulls, and German Shepherds are viewed as more aggressive, which puts more liability on the homeowners that then equals higher monthly rates. If you’re looking for lower monthly premiums, but down the cigarettes and consider buying a small breed dog.

The importance of homeowner’s insurance

Because we are constantly flooded with bills in the mail, a lot of consumers avoid buying homeowner’s insurance. But this could be one of the biggest mistakes that you can make.

Your home is your biggest investment. Normally your house is going to increase in value over time. Why would you not want to protect your investments?

Homeowner’s insurance policies also bring another significant advantage, peace of mind. Knowing that you would be covered if something awful were to happen to you home brings a comfort that you can’t put a price tag on. There are thousands of Americans every year that lose their home because of a disaster that was beyond their control. They find themselves with nothing left but the clothes on their back, this is where homeowner’s insurance steps in.

At Longevity Brokers, we are proud to offer a wide variety of insurance products, including homeowner’s insurance. As an agency, we look to provide the perfect policies to the Denver area. If you’re a new homeowner, or you’ve been an owner for decades, but you don’t have homeowner’s insurance, call a Longevity Broker agent today to get the best quotes available in Denver Colorado. We can help get you the perfect homeowner’s insurance policy to protect you and your home. You can call us today at (720)209-4598 or use the contact form, and an agent will contact you.

Sorry, comments are closed for this post.