There are three main types of insurance you can get as a home owner. They are labeled 1, 2, and 3, with 1 being the lowest coverage and 3 being the most coverage. Easy, right? But to make things interesting, there are also 4, 6, and 8 thrown in there. (Yes, I did count correctly.) These are plans you’ll only look into if you’re renting, or if you own a condo or a very, very old home.

Homeowner’s Insurace-1 (HO-1) is the most basic coverage plan you can get. Essentially, it covers fire and lightning damage. This is good if you live in an area with a lot of storms, or if someone in your family is a terrible cook. Otherwise, this plan isn’t such a great one to get.

HO-2 is much broader. It covers everything HO-1 covered, as well as theft, vandalism, building collapse, and quite a few other things. You get the picture.

HO-3 is the king of Insurance Plans. It protects against almost anything you can think of, except for a few things they mention specifically in the plan.

HO-4 is something you may want if you live in an apartment. This plan protects the contents of your apartment against all things covered in HO-2.

HO-6 will cover you if you own a Condo and aren’t satisfied with the coverage the condo association offers.

And last, but not least, is HO-8. This plan covers very old homes. It essentially will help pay for building materials if your “vintage” house falls apart.

It isn’t the most fun stuff to study up on, but Homeowner’s Insurance is extremely important to know about if you’re purchasing a home. You want to make sure all of your bases are covered when it comes to protecting it.

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- What is Homeowner’s Insurance?