What coverage does home insurance provide?

I'm a first-time home buyer. I need to get home insurance, but what does it cover?

Answer
“Since this is your first home, it’s important to understand what home insurance does! The two main types of home insurance are HO-2 and HO-3.
HO-2 is Broad Form coverage. This means that this policy covers damage from 16 named perils. They are:
  • Lightning
  • Fire
  • Wind
  • Hail
  • Explosion
  • Riot or civil commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Volcanic Eruption
  • Theft
  • Vandalism
  • Falling objects
  • Weight of ice, snow, or sleet
  • Accidental discharge of water or steam
  • Accidental tearing, burning, cracking, or bulging of HVAC
  • Freezing
  • Damage from artificially generated electrical current
Any damage caused by anything other than these perils is excluded from the policy.
HO-3 is Special Form coverage that covers damage on an open perils basis. Anything not specifically excluded is covered.
When looking for home insurance, you’ll need to decide what coverage and policy you’d like. As HO-3 policies cover more, it’s typically recommended for most homeowners.
You can request quotes from various companies or even your own car insurance company to determine what the best rate and coverage will be for you.
You may also want to see if your car insurance or home insurance company offers bundling, which can help you save money. If it doesn’t, you may want to research what companies do and then hop on Jerry. On the Jerry app, you can compare car insurance rates to get the best value and then add homeowner’s insurance as part of their bundling options.”
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Emily Maracle
Answered on Sep 09, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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