What level of perils coverage do you need?

How much protection your home insurance provides depends on which coverage level you buy from Southwest Insurance Center. Home insurance comes in HO-1, HO-2, HO-3, HO-5, and HO-8 forms. Each form covers a different number of perils, such as fire and earthquake, so which you choose can impact how well protected you keep your Austin, TX, home.

Named Peril Coverage

Most homeowners’ insurance policies feature peril coverage, meaning that only the perils mentioned in the policy receive coverage. HO-1 and HO-8 policies cover ten perils, while HO-2 policies cover fifteen.
Financial institutions typically require home buyers who want a mortgage loan to obtain an HO-3 policy. These policies cover the most common perils but still don’t cover everything.

All-Perils Insurance

Only HO-5 policies cover all possible perils. Even if a satellite orbiting Earth crashes into your swimming pool, your HO-5 policy covers it. In insurance, we always say, "Expect the unexpected." That’s why we encourage people to buy all-peril coverage. The premiums only cost a little more per month than an HO-3 policy, but you fully protect your home against financial loss.

Which Policy Do You Need?

We can’t answer that in a blog because every homeowner’s situation differs. Call Southwest Insurance Center for an appointment to create a custom home policy. Protect your Austin, TX, home with a policy designed specifically for it, which covers the gazebo, pool, trampoline, and mother-in-law suite.

We don’t believe in cookie-cutter home insurance, and neither should you! Let us help you design a policy that protects your home, everything in it, and the recreational areas of your yard, too. Call us today.