Homeowners Insurance Coverage Types Explained

Whether you are looking for home insurance in Louisiana for the very first time or wish to upgrade the existing one, it is imperative that you get well versed with the basics of home insurance coverage.

According to the type of property, home insurance in Louisiana can be categorized into eight policy forms. To make more sense about each home insurance coverage, we have taken care to explain each of them in a nutshell.

1. HO – 1 – Basic Form: Meant for single families, this is the most basic and limited type of home insurance in Louisiana, which is nowadays almost becoming nonexistent.

Here your home and personal belongings will be covered at their actual cash value and the specific cause of damage should be either of the following –

• • • • • • • • • •

Fire or lightning Explosion Aircrafts Smoke Theft Hail or windstorm Civil commotion or riot Vehicles Vandalism Falling objects

2. HO – 2- Broad Form: A slight upgraded form as compared to the previous one, this is a more commonly used home insurance policy.

Here dwelling is covered at a replacement cost while personal belongings are covered at their actual cash value. It will as well protect your home the following additional dangers –

• Weight of ice, snow or sleet • Sudden or accidental tearing apart, burning, cracking or bulging of a built-in appliance such as a heating system • Accidental or sudden damage from an artificially generated electrical current • Accidental overflow or discharge of stream or water • Freezing • Volcanic eruption

3. HO – 3 – Special Form: Comes with broader coverage as compared to HO 2, this one is the most common type of home insurance in Louisiana. It offers all “allrisk” coverage for dwelling along with coverage for the above mentioned dangers.

However the following perils are excluded –

• Ordinance or law • Earth movement • Water damage from flooding, sewer backups, or water that seeps up from the ground • Power failure • Neglect • War • Nuclear hazard • Intentional loss

• Government action • Theft to a dwelling under construction • Vandalism or malicious mischief (if vacant more than 60 days) • Mold, fungus, or wet rot (except if it resulted from an accidental discharge or overflow of water) • Wear and tear • Mechanical breakdown • Smog, rust or other corrosion

• Smoke from agricultural smudging and industrial operations • Discharge, dispersal, seepage of pollutants • Settling, shrinking, bulging, or expanding of parts of the structure like your foundation or walls • Birds, vermin, rodents, insects • Animals owned by insured

4. HO – 4 – Contents Broad Form: Specifically meant for those who lease apartments, houses or condos; this one is popularly known as renters insurance.

Apart from covering your personal properties (inside the house or anywhere in the world), it as well covers your liabilities and additional living expenses if you are required to stay somewhere else due to any damage in your current home.

All person belongings are generally covered at its replacement cost. It also covers all the 16 perils covered under broad and special form policies.

5. HO – 5 – Comprehensive Form: Staying true to its name, this one is the most robust and best type of home insurance in Louisiana. It is very much similar to HO – 3 but with few notable dissimilarities –

• Dwelling and personal property are insured at their replacement cost by default • Provide all-risks coverage for both your home and personal belongings • also include higher coverage limits for expensive types of property with normally strict coverage limits, including jewelry, fine furs, and certain electronics

6. HO – 6 – Unit-owners Form:

Known as condo insurance, it is meant for people who live in a condominium or coop. Apart from covering the structure of the condo building, building’s common areas, and the structure of your unit before you moved in;

it as well covers personal property, loss of use, personal liability, medical payments, and loss assessment coverage. But in case you renovate your condominium, it will not cover its expenses, until and unless you possess enough dwelling coverage in your condo policy.

7. HO – 7 – Mobile Home form: It is almost the HO- 3 form but specifically meant for mobile homes and not for a normal single family home policy. It covers the following –

• Trailers, travel trailers, fifth-wheel trailers • Single-wide manufactured and singlewide mobile homes • Double-wide manufactured and double-wide mobile homes • Sectional homes • Modular homes • Park model homes and RVs

8. HO – 8 Modified Coverage Form: Homes that don’t meet the insurer standards required for most types of homeowners insurance in Louisiana can avail this policy.

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Bonano Insurance Agency Phone: +1985-893-9393 E-mail: familyservice@bonanoinsurance.com Website: www.bonanoinsurance.com Address: 1109 US-190 BUS, Covington, Louisiana 70433, USA