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Homeowners Insurance

Protect Your Largest Investment

Homeowners Insurance That Works For You

If you have recently purchased a new home, then you are probably considering whether or not to buy homeowners insurance. Having homeowners insurance is a financially preventative measure that will help you cover the costs of highly expensive repairs to your home and your possessions in the event of a disastrous event. Without homeowners insurance, the cost to repair or replace property and valuables can add up quickly. In addition, homeowners insurance can provide temporary living solutions in the event that your home is unlivable for a period of time. If you are unsure about your need for homeowners insurance or need more info before making a decision, read on.

What Is Homeowners Insurance?

Homeowners insurance protects your home and personal belongings against any sort of damage. It protects anything related to your home such as the property it is located on and the people who live inside of it. Homeowners insurance generally comes with two primary types of coverage: liability and damage. Liability insurance protects your home from injuries that other people sustain while on your property. For example, if someone in your home trips and falls, homeowners insurance can cover the cost of their medical bills. Your insurance policy can also cover any damage to your home by covering all or some of the repair costs.

How Does Homeowners Insurance Work?

Homeowners insurance can be a financial cushion for your home and your personal belongings in the case of a disaster or liability. If your home is damaged, then it is your responsibility to pay for the repairs, but if you have homeowners insurance, then your provider will be able to pay for its repairs. To begin a claim, contact your insurance provider and explain what damage has occurred. From there, an insurance adjuster will help you assess the damage in order to determine the amount of compensation you will receive. The amount of coverage you receive will depend on your policy limits. Some factors that can affect this are the financial limits set on your policy, the deductible amount paid, and whether you have chosen coverage based on cash value or the replacement value of your home and its belongings.

discussing and consultant with house and toy model to protect your home

Your rate is determined by several factors that are used by the company to determine your home’s overall risk for damage or theft. The less likely your home is to undergo damage, the cheaper your rate will be. When you make a claim, the insurance company pays for the damage that has occurred.

Do I Need a Homeowners Insurance Policy?

Unlike car insurance, homeowners insurance is not always legally required. However, having homeowners insurance can help you protect one of the most valuable assets that you own. Most mortgage lenders require homeowners insurance in order to qualify you for your rate. Before you are able to refinance or initially fund your mortgage, the company will likely ask you to provide proof of insurance. This is to provide additional security on both yours and the lender’s behalf.

Young woman collecting leaking water from ceiling while her husband calls roof repair service at home

If you do not buy homeowners insurance yourself, then your lender is legally allowed to purchase insurance on your behalf and charge you for the total cost. A basic homeowners insurance policy provides coverage for your person and house, but many policies cover far more than that. They also often cover structures like sheds or other storage buildings, or incidents that may occur in your home. In addition, they can cover attached structures like decks, garages, and fences or personal property loss due to damage or theft. Certain liability coverages can also take care of instances in which you or a family member under your policy is found legally responsible for an accidental damage to another person’s property.

Having homeowners insurance can protect you from legal liability in these cases. In addition, if a guest is injured by an accident in your house, then guest medical protection can help to pay for his/her medical bills. Homeowners insurance can also cover instances in which you can’t stay in your home after a fire or other incident covered under your policy. In these situations, homeowners insurance can help pay for temporary living costs like hotel bills.

What Types of Homeowners Insurance Policies Are There?

There are eight different types of homeowners insurance, each with their own specific coverage types that have their own advantages and disadvantages. Read on through the different kinds of homeowners insurance to decide which policy will work best for your situation.

A woman in sportswear is sitting on the floor with dumbbells and a protein shake or a bottle of water and is using a laptop at home in the living room


This is a basic insurance policy with a limited amount of coverage. It generally protects your home from the eleven specific natural disasters outlined in its policy like fire, windstorms, hail, or lightning. They often cover personal belongings within the home, but not always. HO-1 is the most basic and inexpensive type of policy available for homeowners insurance, and it is not available in many states.


This policy includes all damage covered by HO-1 as well as additional specific incidents. These include damages sustained from falling objects and water damage. Like the previous policy option, only incidents specifically listed in this policy are applicable. This policy is a bit more comprehensive in scope, but it can leave you vulnerable if an incident that is not specifically listed in your policy occurs. If you do not live in a high-risk area for theft or natural disaster, then this could be a viable option for your home or property.


This is the most commonly purchased homeowners insurance option because of the broad range of coverage. It protects against sixteen of the most common perils and any other risk that may occur except for those that are specifically excluded such as earthquakes, floods, or nuclear accidents. The policy will cover personal belongings in the home, based on the terms outlined in the HO-2 policy, which means that belongings are only covered in specific instances. Individual insurance agencies will often cover different events or disasters; make sure to check with your agent to find out which specific events are covered under your policy. If you want to cover against a wide range of the most common incidents, then HO-3 can be a great all-around option.


HO-4 is known primarily as renters insurance and it covers property in a rented home or apartment. Renters are encouraged to get a HO-4 policy to cover any damaged or stolen personal belongings as most insurance plans held by landlords won’t cover personal property losses. HO-4 can be a great option if you are primarily concerned about the belongings in your home, but it does not cover damage to the property itself. If your landlord allows for modifications or additions to the rented property, then those can be covered under the HO-4 policy as well.

fireman viewing kitchen stove and counter on fire and owner is covered by homeowners insurance


The HO-5 policy is essentially a HO-3 policy with one minor caveat. HO-5 covers personal property from just about any incident that could occur except for those that are specifically excluded. Because of this policy’s comprehensive nature, it is generally more expensive than other policies. HO-5 is the most comprehensive homeowners insurance policy available. If you are concerned about damages to your home or property that are not covered under a less specific policy, then this could be a great option for you.


HO-6 policies are designed for owners of condos and tenants who live in co-ops. Most condos and co-ops provide different homeowners insurance policies for their tenants. If you are the owner of one of these structures, then you want to make sure that you have a comprehensive insurance policy in place for your property. HO-6 policy generally covers the wall, ceiling, and floor of the residence as well.


HO-7 insurance falls under the same level of coverage as a HO-3 policy but is specifically designed for mobile homes as they are not covered by HO-3 policies. The term mobile home does not only encompass trailers but also the recently popular “tiny home.”


HO-8 policies are designed for old homes that require repairs or replacements that are more expensive than the current cash value of the home. These policies are generally reserved for landmarks or historically significant places. Homes that are newer than 40 years old generally will not be covered under this policy.

How Much Coverage Do I Need?

As you can see, a variety of policies exist to make sure that every living situation is covered. When deciding on which one is best for you, consider these factors:

1. What You Need to Insure

You should select the homeowners insurance policy that will provide the most comprehensive level of protection for your specific situation. For example, if you live in an older home, then a HO-8 policy will likely be the best option for you.

2. How Much You Need to Insure

A more expensive home or property will require a larger deductible to properly insure. In addition, multiple structures around your home or expensive possessions will require more extensive coverage.

3. How Much You Want

The largest factor in selecting homeowners insurance is how much coverage you think will suit your situation best. If you live in an area that is at a higher risk for theft or natural disaster, then you will want to purchase more coverage. Overall, the more property that you own or rent and how expensive your assets are worth directly correlates with the amount of coverage and price of your deductible.

Selecting Your Policy

Consider all of these factors to help you decide how much coverage you need from your homeowners insurance policy. You may find that you need several types of homeowners insurance because of the property that you own. In these instances, you may be able to bundle insurance in order to get the best price available. If you are concerned about specific instances not covered under your policy, it is always a good idea to consult with your local Acceptance Insurance agent. We will be happy to work with you to help provide the best coverage possible for the best price.

There are plenty of options available for homeowners insurance. In addition, many companies are willing to provide you with quotes for free, and there are plenty of websites that allow you to compare quotes and coverage online for free. If still need help deciding on homeowners insurance or if you are ready to make your decision and insure your home and property, get a free quote from Acceptance today.

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