Home insurance policies are something that most homeowners don’t give much thought to until they need them. In New Mexico, with monsoon season approaching, many homeowners can expect to experience water damage to their roofs. Understanding your insurance policy before disaster strikes can help you to be prepared for whatever comes your way. At American Restoration Water & Fire LLC, we are always here to help. Here’s a breakdown of what the different types of homeowner’s insurance cover. (We haven’t covered HO-4, HO-6, or HO-7 in this blog, this is focused on the typical Albuquerque and Rio Rancho home.)

HO-1 is the most basic form of homeowner’s insurance. Floods and earthquakes aren’t typically covered with this type of policy. Most mortgage companies don’t recommend this coverage. This type of policy typically covers:

  • Hail and windstorms
  • Lighting
  • Explosions
  • Vandalism
  • Damage caused by aircraft
  • Volcanic eruption
  • Fire and smoke

HO-2, or broad form insurance covers everything in HO-1, plus:

  • Freezing of household systems like air conditioner or heating systems
  • Overflow of water or a stream
  • Artificially generated electrical current
  • Falling objects
  • Roof damage due to the weight of ice or snow
  • Damage to pipes and other household items

HO-3, or special form is a type of policy that covers everything mentioned in HO-2, as well as a little more. Instead of having to name each and every type of event that is covered in the policy, this policy covers everything except what’s excluded. This coverage typically includes the home and attached structures and your belongings. Also included is your personal liability if someone is accidentally injured on your property.

HO-5 is known as comprehensive form, and it covers more types of damage and events than any other type of policy. This coverage covers any type of damage unless specifically excluded. Typically excluded from an HO-5 policy are floods and water damage, mold, earthquakes, intentional loss and more. You will need to speak with your insurer for the details on your individual policy.

HO-8 is a policy designed specifically for older homes. This coverage includes everything in the HO-3 policy, but with a few modifications to better suit historic homes.

American Restoration encourages you to review your home insurance policy and know your coverage before disaster strikes. If you have any questions, contact your insurance company. In the event of a fire or flood, we are always here to help, even with the claims process. Our team is experienced and skilled with dealing with insurance companies to ensure that you get the most out of your coverage. Give us a call or take a look at our blog to learn more about our services.