Types of Home Insurance Policies in Texas

When choosing a home insurance policy in Texas, it’s essential to understand the differences between the various policy forms available. The most common types are HO-1, HO-2 and HO-3, each offering distinct coverage levels and suitability for different needs.

Common Home Insurance Policy Options

The following are common home insurance policies in Texas:

• HO-1 policies—This is the most basic form of home insurance that may be available. It typically only provides coverage for the home’s structure and only if specific events occur. There is usually no liability or personal property coverage included.
• HO-2 policies—Like HO-1, an HO-2 policy only covers home damage for specific “named perils” listed in your plan; however, an HO-2 goes further and covers more named risks. It can also include coverage for personal property and liability.
• HO-3 policies—This is the most common policy for homeowners. An HO-3 policy can cover your home on an “open perils” basis, meaning all damage could be covered except for specific exclusions. It also includes coverage for personal property on a named peril basis and offers liability coverage.

The right policy for your home will depend on personal circumstances and home characteristics. If you have a mortgage, your lender will often require more robust coverage than an HO-1 policy.

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Choosing the right policy depends on your needs and budget. HO-1 might be suitable for those seeking basic, affordable coverage, while HO-2 and HO-3 are better for homeowners wanting more extensive protection for their personal property and home. For home insurance near you, contact Allsafe Insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.