Different Types of Homeowner's Insurance

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There are many different types of homeowners insurance policies available for you to choose from based on your needs. Learn about the different types of homeowner's insurance policies available with help from a registered real estate broker in this free video clip.

Part of the Video Series: Real Estate Info
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Video Transcript

Hi, I'm Cathy McClellan. I'm a Florida real estate broker as well as a building contractor with Today's Home Real Estate in Panama City, Florida. Our topic of discussion today is home owner's insurance. There are several types of home owner's insurance, and you have to do your homework and find out what's best for you. They have bare bones policies that cover just structures, they have everything but the kitchen sink. It's just really depending on what it is that your need is and what your lender is requiring. An HO policy is what your insurance agent is going to call them, an HO1 an HO2 an HO3, those are different types of home owner's insurance. For an HO1 policy, that's basically a structure, just the structure. It's a less expensive or inexpensive policy that covers just the structure and maybe a little liability insurance. You're wondering about liability insurance, why do I have to have liability insurance? Well, if you're having a yard sale, or you decorate for Christmas, or you decorate for Halloween and you have people at your house and someone trips and falls and breaks their leg. Your liability insurance is going to cover their medical bills, and you definitely need it. An HO2 policy is a policy that would also include your interior belongings, your personal things, your computer, your collections, your televisions, your personal, your clothing. It also includes the structures on your property, your garage, your sheds, things like that, as well as a liability portion. An HO3 is the most common type of insurance available now, and it's very similar to an HO2 policy because it covers the structure itself, it covers the interior contents, it covers the liability, it covers the additional buildings. It also has some loss of use. If you have to move out of your house due to a fire and there has to be repairs done, a lot of these insurance policies will pay for you to stay somewhere else while your home is being repaired. Really you need to check with your lender, see what kind of coverage that they require that you carry. Do your homework, shop around, check your prices, and get insurance that is suited best for your need. I hope you find this helpful, this is Cathy McClellan, until next time.


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