- Stimpson defines the first level as the "basics." Here you get insurance on what he calls 11 of the usual home-destruction suspects, including fire, lightning, windstorms, smoke and other disasters. But do your homework. "Because of these limitations, many states are not offering this protection anymore, so double-check whether or not it is available in your area," he says.
- Stimpson says the second level is the best option for most homeowners. "This is the next step up from basic; this coverage also protects your home from falling objects, snow and ice damage, frozen plumbing and faulty electrical systems, in addition to all the coverage from the HO-1 policy," he says.
- Another good option for homeowners, this third category costs more than the first two, but Stimpson says it's a "lot more valuable." This option protects against all perils except the ones excluded explicitly from the policy -- almost always earthquakes, flood protection, "even war and nuclear accidents," he says.
- Here's where home insurance for renters kicks in. The only difference from the previous three categories, Stimpson says, is that this policy protects all of your possessions but not the actual home itself.
Insurance Bundlers Are Happy, J.D. Powers Says
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