Understanding Home Owners Insurance – 1 (HO-1)

Your home is your most valuable asset. Your biggest investment. What would happen if something were to happen to your investment? What if it were taken from you because of a fire or it was severely damaged because of wind or hail? Would you have enough money in the bank to repair your home and replace everything you lost? Probably not.

Although many people don’t know it, there are several different kinds of homeowners insurance policies. Each policy provides different coverage for different
disasters or damages that could happen to your house. HO-1 is the most basic policy type and is often considered to be “catastrophic” insurance. These HO-1 policies are not the most popular plans because of their limited coverage, but depending on your situation, they could be perfect for you. At Longevity Brokers, we pride ourselves on providing consumers with the information they need to make the best decision for their homeowners insurance policiesHand hold house against green field

What is Homeowners Insurance?

Before we explain the HO-1, let’s explain the basics of homeowners insurance first. The idea of homeowners insurance is simple, it’s a policy that protects your home and the things inside of it against several different things that could happen to your house or belongings. But the types of coverage and what is excluded from each policy isn’t as simple.

These insurance policies protect your home and other buildings on your property, but what exactly do they protect them from? The majority of policies will protect your home from disasters like fires, hail, and windstorms, but other acts of nature like earthquakes and flooding are rarely covered under a standard policy. If you live in a region that earthquakes are frequent, you can purchase additional coverage to add to your standard policy.

Aside from protecting your belongings from some of the things that Mother Nature can throw at you, homeowners insurance also protects you from being sued if someone were to injure themselves in your house or on your property. What if your friend were walking down the stairs and your handrail broke and they tumbled down the stairs because of it? They could sue you for hospital bills and other related costs. Most policies will give you liability coverage that will help pay for lawyer’s fees, hospital bills, and other related expenses if you’re found at fault for the injuries.


Now that we’ve covered the basics, on to the specifics of the H0-1 policy. As we mentioned earlier, they are the most basic of the plans that you can buy and only provide minimal coverage.

HO-1’s cover damages from fire, vehicles, volcanoes, smoke, theft, explosions, wind, falling objects like trees, and other possible associated damages. But with each policy, be sure to look at the fine print to see the exact details. For example, with damage from falling trees, you’ll have to prove that the tree didn’t fall because of a lack of maintenance.

Because they offer less coverage than most plans, these HO-1 plans are one of the least popular homeowners plans available. They cover 11 different “perils” that could damage your house. But because a lot of people think that nothing tragic is going to happen to their home, a lot of consumers still choose the smallest plan to save money. If you’re comfortable putting your home at risk or facing expensive repairs, the HO-1 could be perfect for you, but most consumers go with high plans like the HO-2 or HO-3. Take the time to assess your home and what you need in a homeowners insurance policy. Don’t leave your home vulnerable.

If you’re thinking of buying a HO-1 policy, it’s important to understand exactly what you’re going to be purchasing. Understand that not everything will be covered and that you could have to swallow some replacement costs if anything were to happen. One of the biggest things that aren’t covered under these plans is water damage. A pipe bursting or a flood can completely destroy your home. It’s a common issue that arises in people’s home but is rarely covered by their plan.

Another important factor to look at with your HO-1 policy is if it’s an actual value plan or a replacement cost plan. While they might sound similar, these two types of very different. The replacement cost is what you would pay for that item if you went and bought it today. The actual cash value is what you pay for a comparable item minus the depreciation. These two differences could mean the difference in how you replace your belongings in case anything were to happen to your home.

Homeowners insurance – why it matters

Your homeowner’s policies are something that you hope you never need to use, but you’ll be grateful for it if you ever need it. Aside from providing peace of mind, having the proper insurance plan is one of the best things that you can do for you and your belongings. There are thousands of people every year that are devastated to find that they’ve lost everything they own because of something outside their control. Having something tragic happen in your life like a fire is stressful and difficult to get through, but don’t make it worse on yourself by not having an insurance policy to help you recover your losses.

Longevity Brokers is pleased to provide homeowners insurance policies to the Denver area, but we also provide several other insurance products to fit your needs. Just like with your home, have the proper life insurance and auto insurance is one of the most important purchases you can make. If you have any questions about your homeowners insurance or other insurance policies, we would be happy to talk to you. Fill out the quote form to receive the best insurance rates in Denver, CO.

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