What It Covers

• Homeowners insurance plans cover several perils, such as vandalism, theft, falling objects and damages caused by snow ice, sleet, vehicles and aircrafts. Also covered are damages caused by fires, lightning, windstorms, hail and explosions. Surges in electrical currents, problems with appliances, heating and cooling systems, plumbing systems that cause damages are covered as well.
  
  

Considerations

• Homeowners can lower their premium amounts by taking on more of the insurance costs (out of pocket) as well as ask for discounts in certain situations. Policy holders can increase their deductible amounts, which will lower their premium payments. Also insurers also consider lowering homeowners' insurance costs if the owners take certain measures to safeguard their properties from damages. This includes installing smoke detectors, sprinkler systems, fire extinguishers, fire and burglar alarms, deadbolt locks and fire-safe window grates.
  
  

Types

• There are several policies available that are tailored to the different needs of homeowners. Some policies cover specific types of homes. For example, policies such as HO-8 cover older homes and HO-6 policies are bought by owners of co-ops and condominiums. Some policies are bought for broad (HO-2) or specific (HO-3) coverages while renters insurance policies (HO-4), which doesn't cover the building structure, covers liability and the perils similar to other homeowners plans.
  
  

Warning

• The purchase of homeowners policies are not optional choices for individuals looking to buy homes. Mortgage lenders generally require these policies to be obtained by homebuyers prior to closing. Lending companies want to protect their financial interests. Also homeowners have to buy separate policies to pay for damages caused by floods and earthquakes, as these perils are not covered under these plans.