Becoming a homeowner makes you responsible for a large asset, which is why it’s crucial to ensure you can care for your new property. While often required when mortgaging, home insurance can be an invaluable tool if your house sustains damage. Here’s what you should know before selecting a policy.

What Is Homeowners Insurance?

Home insurance is the coverage you get on a newly purchased house to protect you from disasters, like fires. This will reduce your out-of-pocket costs because it provides coverage for different situations that cause significant damage to your home, such as a hailstorm that results in siding replacement.

home insuranceThere are several policies available, depending on the type of coverage and protection you’re looking for, including the standard HO3, the comprehensive HO5, and more limited varieties like HO1 and HO2. Policies should be reviewed and selected based on need, taking into consideration factors like flood zones and the age of the home.

What Does It Cover?

The amount of coverage you receive depends on the type of policy you select. Your insurance may provide protection for the physical dwelling and surrounding structures, your personal property, and liability for injuries that occur on your property.

The most common form of insurance is HO3. This insurance covers a range of typical perils, including damage incurred from fire, smoke, windstorms, hail, falling objects, plumbing issues that cause flooding, vandalism, theft, and electrical problems.  

An HO5 is a more comprehensive option and provides coverage for more expensive or newer homes, with premiums that surpass standard policies. This is ideal for new homes that are built using superior quality materials, which will cost more to replace if repairs are needed. HO5 offers coverage past typical limit amounts of $200,000.

The most limited coverage is HO1 and HO2, offering assistance for only some of the most basic issues faced by homeowners, like weather-related damage. 


If you’re looking for a home insurance policy for your new property, consult the team at Western States Insurance Group in Lovington, NM. These professionals will help you find protection for your home, vehicle, or business. To learn more about coverage options, visit them online or call (575) 396-1318.