Which homeowners’ insurance perils coverage do you need?

When you purchase home insurance for a single-family home, you can choose the level of perils coverage in your policy. In this blog, Modern Risk Management offers a quick guide to perils coverage for Houston, TX homes.

What is a peril?

In insurance, the term peril refers to a damaging event, such as a fire or tornado. A break-in or vandalism also qualifies as a peril.

Perils Covered in Home Insurance

Home insurance consists of four levels of perils coverage for single-family homes – three named peril levels, HO-1, HO-2, and HO-8, plus an all-perils level, HO-3. One form, HO-5, offers all-perils coverage and additional coverage types.

Named peril coverage means that it covers any peril specifically mentioned in the policy. HO-1 policies cover ten perils, while HO-2 policies cover 15 perils. If you want to know that no matter what happens, your policy will cover the damage repair or theft, choose at least the HO-3  form of coverage.

When to Make Your Decision

Each homeowner must choose which level of coverage they want to purchase at the outset of buying an insurance policy. You can amend a policy at a later date, but it won’t apply retroactively. If a peril damaged the home on the 11th of a month, updating the policy on the 12th won’t cover the damage. It will ensure that if the same situation occurs again, the policy will cover the damage on the second event.

Contact Our Offices Today

Call or email Modern Risk Management today to consult an insurance agent about updating your home insurance. Don’t let your Houston, TX home go unprotected or under-protected. Contact us today!