The homebuying market is changing: Baby Boomers are downsizing, and young adults are delaying their purchase of a first home. Whether you are buying a traditional home, a condominium, a tiny house or an RV, it’s important to understand the type of home insurance you should buy. Changes in the types of home purchases being made require a hard look at the type of home insurance coverage needed to protect the value of your property and the possessions you have worked so hard to obtain.

There are many different approaches you can take toward choosing home insurance that is the perfect fit for your home. One of those ways is to meet with your Crawford Butz agent and review various coverage options for your home.

Here’s what else to consider.

Comparing Coverages

Home insurance provides the following types of coverage for your home: Basic (HO-1), Broad (HO-2), Special (HO-3) or Comprehensive (HO-5):

·       Basic coverage (HO-1) is for named perils — such as fire, theft or vandalism

·       Broad Coverage (HO-2)  — a more commonly purchased form of insurance — covers all of the perils found in HO-1 coverage plus additional perils, such as falling objects or damage caused by ice, sleet or snow

·       Special coverage (HO-3) — the most commonly purchased form of homeowners insurance — does not limit coverage to named perils (as HO-1 and HO-2 do)

·       Comprehensive coverage (HO-5) covers all perils accept those specifically excluded by name in the policy

Additionally, renters who in apartments or rental units may consider HO-4 coverage, which is the tenant’s form. Condo owners choose HO-6. And owners of mobile homes choose homeowner insurance form HO-7. The type of home you own (or rent) and the amount of coverage (basic to comprehensive) will dictate which coverage to choose.

Choosing The Right Home Insurance Company

All home insurance companies are the same, right? Not necessarily. Choosing the right home insurance company requires a look at the coverage they provide, the exclusions standard in policy form HO-5, deductibles available, and the company’s claims paying ability. Also, a home insurance company’s ratings are an important indicator of their financial strength and ability to pay claims when a loss occurs.

How Much Should I Pay?

The amount of coverage you need relates to the cost you will pay in premiums. The average cost of home insurance varies from state to state. The amount of deductible you choose factors into how much you pay. So does the policy form you choose, the level of coverage needed, and the home insurance company you choose. Choosing the right coverage requires a careful and complete analysis of these factors to ensure that you choose correctly.