What does home insurance do and what's covered on a policy?

Is home insurance like car insurance or does it have different coverages?

Answer
“Like car insurance protects your car, the purpose of home is to protect your home.
Home insurance policies are considered package policies. This means that they are made up of more than one type of insurance. While basic car insurance is liability car insurance, basic home insurance policies contain six types of coverage.
They are:
  • Coverage A - Dwelling
  • Coverage B - Other Structures
  • Coverage C - Personal Property
  • Coverage D - Loss of Use
  • Coverage E - Liability
  • Coverage F - Medical Payments to Others
With home insurance, you can purchase either an HO-2 or HO-3 policy. Each would contain the six coverages and they would be covered on a named (HO-2) or open perils (HO-3) basis. You also have the option to add specific endorsements like home business or personal injury.
Like car insurance, you have the ability to choose your coverage levels and policy limits. However, home insurance isn’t required by the state. Most lenders require home insurance to protect your home, and it’s recommended to have, but you can legally own a home without it.
If you’re looking to buy home insurance, see if your current car insurance company offers it. If they don’t, it might be time for a new provider. Use the Jerry app to compare quotes from dozens of reputable insurers that offer both car insurance and home insurance.”
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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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