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The eleven common perils are:
- Fire of lightning
- Loss of property because of fir of other perils
- Windstorm or hail
- Explosion
- Riots and other civil commotions
- Aircraft
- Vehicles
- Smoke
- Vandalism and malicious mischief
- Theft
- Breakage of glass that constitutes a part of the
building
The following table is a guide to the different types
of coverage and can be used to help you decide what
level is appropriate for you.
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Insurance
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Policy
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Coverage
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HO-1
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Basic Policy
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Covers the basic 11 perils
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HO-2
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Broad form
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Covers the same as HO-1 and may
include such perils as burst pipes and falling
object
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HO-3
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All Risk
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Covers everything not specifically
excluded
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HO-4
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Renters Policy
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Protects personal possessions
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HO-5
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Comprehensive
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Covers everything in HO-3 and
then some. This is the most expensive insurance
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HO-6
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Condo or Co-op
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Special insurance used for Condos
and Co-ops
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HO-8
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Covers older homes that may have
some special architecture
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Generally covers cash value or
repairs but not replacement.
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Remember the higher the deductible the lower the premium.
The deductible is the amount you pay for up front before
insurance kicks in. If you can afford to pay a higher
deductible, this may be an option to help lower your
premium.
You may also choose to cover some specific possessions
for more money than covered by the policy. You may be
able to do this by paying extra for these specifically.
These are known as floaters. Items may include electronics
or home office equipment but can also include such things
as fur coats and jewelry.
In the event your home becomes uninhabitable due to
a disaster or accident, you are generally covered for
additional living expenses under the loss-of-use coverage.
The amount you are covered on depends on your policy;
however, a 20-25 % coverage level of the entire insurance
coverage level is normal. Again, you may purchase more
coverage and this will be reflected in your premium.
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