How To Read Your Homeowner’s Policy Part I


Owning your first home is exciting, but there is a lot of responsibility that comes with owning a home as well. One of the first and foremost responsibilities is insuring your home. Trying to read and understand an insurance policy can be intimidating. Insurance policies are like legal documents in that they contain their own jargon that can be difficult to understand. But don’t worry you don’t need a legal degree to understand it. Today we are going to explain how to read your homeowner’s insurance policy.

 Why You Need Homeowner’s Insurance

Homeowner’s insurance helps protect the investment you made in your home. It protects against certain home-related property and liability risks by covering your house, other structures located on your property, personal belongings including jewelry, clothing, stereo equipment, and furniture when stolen, damaged, or destroyed. It may also cover the medical expenses, liability claims, and other damages if someone suffers bodily injury or property damage due to your negligence.

What A Typical Policy Consists Of

A typical homeowner’s policy is mostly a standard form that consists of preprinted pages. There are different types of policy forms which include the: HO-1, HO-2, HO-3, HO-4, HO-6, and HO-8. The liability coverage on these forms is usually identical. However, they differ in the following ways:

  • The type of home involved:
    • House
    • Apartment
    • Condominium
    • Cooperative
  • The extent of property coverage

You should be able to find your HO designation in the bottom right hand corner of every page of your homeowner’s insurance policy.

The Format

Most homeowner’s insurance policies follow a general format that will include:

  • A declarations page
  • A section that defines policy terms
  • Property insurance coverage usually titled Section I
  • Liability insurance coverage usually titled Section II

Stay tuned for Part I of How To Read Your Homeowner’s Policy.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more, or to get a free quotecall our Carrollton, TX office today at 972-492-8500.