Home and Health Insurance Resource Guide

For many, home and health are two of the most important aspects of life. When something bad or unexpected happens, to either, it can be tremendously frightening and costly. When one buys insurance, it's a move to protect themselves and reduce some of the financial burden that can come from illness or damage to one's home. Despite the knowledge of why these insurances are needed, purchasing either health or home insurance can prove confusing and difficult. The primary reason for this confusion is the many different options that are available, which can make it hard to know what is right for one's personal circumstances.

When it comes to health insurance, many people have benefits through their place of employment and choose a plan from the options that are made available to them. Other people, such as the self-employed, must purchase their own insurance. This can be costly depending on one's income, current health needs, and the desired plan. Fortunately for low-income people, there are programs that can help them get the insurance that they need at a lower premium. When searching for insurance for oneself or family, one should check the health insurance marketplace in their state, as it will provide more detailed information about what options are available. Even the most basic of insurance will cover certain services to some extent. These services include hospitalization, laboratory tests, emergency services, preventative services, pediatric services, prescription drugs, and mental health and substance abuse treatments.

Homeowner's insurance can be confusing due to the fact that it comes in many types, also known as homeowner forms, or HO forms. HO0, or the dwelling and fire form, is the form that home mortgage banks will acquire for a borrower if they fail to maintain their homeowner's insurance coverage. HO2, known as the broad form, is the lowest form of coverage typically available to homeowners, and it covers only the dangers (perils) that are named. HO3, also called the special form or "all risk" coverage, covers all risks to a home except those that are named. HO4 is the tenants form and is typically for renters. HO5 is the comprehensive form and is a more extensive type of coverage than HO3. Floods and earthquakes generally are not covered under insurance policies and have to be covered by special forms of insurance provided by the government or another alternative agency. Personal liability is another form of coverage that may or may not be included in a homeowner's policy. Homeowners should always ask about personal liability insurance in the event of a problem such as a dog bite. Homeowners and renters insurance is also necessary to protect belongings in a car in the event of loss, as they are not protected by auto insurance.