Types of Home Insurance

Maneuvering insurance can be tricky with the many policies available on the market. Unfortunately, most homeowners in Plano, TX, may not be aware of the different types of home insurance at their disposal, leading to making the wrong choice. Below, Paragon Independent Insurance Agency takes you through the different types of home insurance you need to know about.

Basic Form /HO-1

This policy provides coverage of your home’s structure, including the garage, appliances, and home features such as carpeting. It covers situations like fire, lightning, theft, explosions, and vandalism.

Broad Form/ HO-2

It helps cover your home and personal belongings. Some things covered here include burning or cracking of some household systems, accidental damage from an electrical current, and accidental overflow of water in the house.

Special Form/ HO-3

The HO-3 is a common type of homeowners insurance policy covering your home, personal property, and liability against things like vandalism, lightning strikes, fire and smoke, and theft.

Contents Broad Form/ HO-4

It is also commonly referred to as standard renters’ insurance. It helps protect one’s personal belongings against various perils like hail and windstorms, electrical current damage, and explosions. Some policies cover additional living expenses that can help you in case you have to move out of your home temporarily. The rental unit is not covered here, and the landlord is required to get a separate insurance policy to cover the unit’s structure.

Comprehensive Form/ HO-5

This type of home insurance covers your home, personal belongings, medical payments for other people, and additional living expenses. It is an open-peril policy covering all things not excluded in your policy. Typical exclusions are things like earth movement and intentional loss.

Unit-owners Form/ HO-6

Commonly referred to as condo insurance policy, it helps cover items inside your condo unit. Condo residents are responsible for everything within their walls, while the condo association has a separate insurance policy covering external parts of the building and common grounds.

Mobile Home Form/ HO-7

Covers manufactured or mobile homes like RVs, sectional homes, trailers, and modular homes. The policy provides cover against risks like theft, smoke, and vandalism.

Modified Coverage Form/ HO-8

This type of insurance protects older homes. However, compensation for covered damage is paid in cash. Significant houses like historical landmarks or homes built with methods and materials not common today are included in this type of insurance.

To enjoy the benefits of the different types of home insurance, residents of Plano, TX, can reach out to Paragon Independent Insurance Agency for assistance.

Is It Time to Update Your Auto Insurance?

When you own a vehicle in Plano, TX, you know that maintenance is vital. That’s why you carry out scheduled maintenance as per your manufacturer’s recommendations. To even up your game, you undertake car mods to ensure that your ride remains in tip-top condition. Unfortunately, many motorists shun the idea of upgrading their auto insurance until something unfortunate happens. If you are wondering when it’s a good time to update your auto insurance, stay on as Paragon Independent Insurance Agency shares tips. 

Here are some situations to signal that you need to review your auto insurance:

  • Teen driver: If you would like your teenage son or daughter to drive your car, you need to adjust your auto insurance. Teenagers carry an added risk when driving. As such, you need proper insurance to protect them. To note is that your teen’s academic performance, completing a defensive online course, and installing anti-theft devices affect your auto insurance rate. 
  • Changing vehicle use: If you want to use your personal vehicle to run commercial errands, you need to update your insurance to commercial auto insurance. Otherwise, your insurer won’t compensate you for accidents that occur when carrying out commercial activities using personal auto insurance. 
  • Moving to a different residence: Change of locality affects your auto insurance rate. Depending on how the accident or theft-prone your area is, your insurance rate can either go up or down. 
  • New vehicle: Suppose you have acquired a new car using a car loan. While your financier might allow you to transfer your current auto insurance, you have to upgrade it to your financier’s requirements. Most likely, your financier would want you to add more coverage options. 

As you can see, there are many reasons to review your auto insurance. If you are unsure whether it’s time to update your auto insurance, please talk to the Paragon Independent Insurance Agency of Plano TX, for more information.