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Home Insurance Coverage

Home insurance coverage | Summary of the different types of home insurance coverage and how this form of insurance all fits together in terms of definitions and protection afforded. Insurance for the home is an important decision; but what is home insurance coverage? Coverage can mean or describe different things to different people, including product forms, areas of insurance protection and events or circumstances that you are covered for.

Here we explain the characteristics of this type of insurance in a way that helps to differentiate terms and allow you to navigate to separate articles of interest. Home owner insurance coverage or 'Homeowners' is the name of the insurance product that owner occupiers buy to protect their home and contents.

home insurance coverage characteristics

In order to understand home insurance coverage characteristics and pricing it helps to have an overview of home insurance coverage in the widest sense. Homeowners is typically sold as a package of coverage types, as a multi-line insurance product. The chart below illustrates how the word 'coverage' is often used interchangeably to refer to what are three distinct aspects of your home insurance protection:

  • Forms
  • Areas
  • Perils

home insurance coverage characteristics  ________________________________________________________________

Coverage Forms   =  Products     Differ by Perils & Settlement

Force Placed
Ho1 Basic
Ho2 Broad
Ho3 Special
Ho5 Premier
Ho6 Condo Owners
Ho8 Older Home/Non-Standard

Coverage Areas   =   Types Of Coverage(s)   =  Homeowners Package

A. Dwelling
B. Other Structures
C. Personal Property Insurance
D. Loss Of Use
E. Personal Liability Insurance
F. Guest Medical

Cover(age) Perils   =   Cover For and Against?   =  A. B. & C.

What you ARE and ARE NOT covered against by default:

Perils List

Endorsements   =   Extra Additional Cover

Replacement Cost
Personal Articles Floater/Policy


Home Insurance Coverage Forms

Forms are the name given to the different products that exist in the market. Products are denoted by Ho, with the Ho3 Form being by far the most popular product sold and agent recommended home insurance coverage form. These products are designed for owner occupiers, people wishing to insure property as their primary residence.

Holding some form of product is required by mortgage lenders in order to satisfy the banks requirement for hazard insurance in order to protect the loan collateral. Homeowners that fail to buy a policy, or have one cancelled or expire run the risk of having a Force Placed policy imposed by the bank, the cost of which is added to the mortgage.

  • Product Forms differ by Perils and Settlement


The popular Ho3 product provides a solid basis of protection that can be enhanced through purchase of policy endorsements. Also known as 'Insurance Riders', endorsements are a way to build upon the default product offering in terms of home insurance cover or perils and settlement in addition to extra protection.

Home Insurance Coverage Areas

Areas refers to the aspects of insurance protection or home insurance coverage types within the typical product. Recall, home insurance comes as a package or collection of separate coverages each serving their own purpose and subject to their own terms. Although when you buy home insurance you pay a single premium or receive a single price quote, the premium and quote is inclusive of all the separate coverage types.

  • Coverage types make up the Homeowners Package


Homeowner policies go far beyond the basic requirement of the mortgage lender for hazard insurance, offering protection in key areas of importance to homeowners for a quote that is typically less than an inferior force placed product. In addition to protection for your home and personal property (aka contents), you enjoy further coverage including valuable personal liability insurance. Collectively, these home insurance coverages are referred to as the homeowners package.

Home Insurance Coverage Perils

What are you covered against? Home insurance coverage is often used to mean the things, events, occurrences or circumstances that are covered by insurance. Known as perils, it is essential to familiarize yourself both with what IS and what IS NOT covered as standard or by default.

  • Perils are what your Home and Personal Property is Covered For and Against


Some perils may be brought under coverage by means of an endorsement; however many things cannot be insured against through a standard homeowners product of any form. Follow the link above to our Perils List Chart, which summarizes what is included and excluded by default according to your choice of product form.

Best Home Coverage

Find carriers here online and discover the best coverage and quotes in your area. The popular Ho3 product accounts for the bulk of policies sold and offers solid protection for an affordable price. Follow our articles on the special and premier forms to learn why Ho3 is the home insurance coverage form of choice. While special form coverage may afford the best policy buy, what about pricing and carrier quality? Whatever product you buy, price quotes are based upon rates that insurers set for a home at your location requiring a given policy limit. There are no set or standard prices, rather quotes are unique to the policyholder and take into account many facts in regard to the specific property and insured. The competitiveness of the underlying rate used by any carrier in calculating your quote is however an important determinant of overall price quote competitiveness. Premium quotes may vary by hundreds of dollars on account of the rate used and hence choice of insurer. Shopping home insurance quotes online is a way that consumers may identify value since there is no one cheapest company or universally applicable list of cheap companies. In addition to price quotes, shoppers may consider quality as relates to the insurance company itself. Customer service and services, such as online claims submission and monitoring in addition to performance in the claim handling process are important metrics that may inform choice. The best home insurance coverage is the right product from the right provider for an acceptable mix of price and quality. Find carriers and get free quotes today.

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