HO3 Policy Coverage

It is not a surprise that no matter what type of home insurance policy you purchase, there is a list of common “hazards” that most insurance agencies will not cover. HO3 policy coverage offers insurance for all hazards, except those that are specifically excluded from the policy.

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Each homeowners insurance provides a combination of dwelling and liability coverage that includes losses from use resulting from the damages. Thus, there is a necessity to distinguish and understand each type in details.

HO3 type of coverage has the most popular and most comprehensive form. It has the minimum insurance coverage and quotes required by institutional lenders and offers protection for water damage (not related to flooding). Nowadays, there are 2 main features of HO3 coverage:

    • Special owner policy;
    • Covers all hazards, except some, which are specifically excluded by the company.

This type of policy is available for independent houses, single-family homes and duplexes in which there is a unit which is occupied by the owner. The owner must live in the house as his main residence. The protection of owners covers the building, other structures of the property and personal property of the owner, also provides protection for additional survival expenses and personal liability coverage.

HO3 policy does not include additional costs caused by the incorporation of new laws or local ordinances that regulate the construction codes of buildings. However, you can acquire an endorsement or attachment in case of changes in laws and ordinances. With this you will cover the extra costs that involve constructions which comply with the new codes.

Special HO3

Special HO3 is the most commonly used policy and covers damages caused by all claims covered by the HO2 protection, in addition to almost every other incident you can imagine, except for those that the policy excludes.

Not Covered

Some accidents that are not covered by the HO2 and the HO3 are rare situations such as condensation of the attic insulation material that could cause water stains in the sky of the underlying room or damage to curtains that could freeze until forming a plate in the glass window.

How was already mentioned, this policy contains a huge amount of specific exclusions. Among them there are:

  • intentional damage,
  • flood,
  • earthquake,
  • material fatigue,
  • damage caused by insects or rodents,
  • other harm caused by water
  • nuclear accidents,
  • war.

Although this list contains the most common dangers not covered by the standard HO3 protection, be sure to contact your agent or company for additional exceptions.

What Can I Cover?

With the help of this coverage it is possible to cover liability, fire, theft and damage caused by water to structures and personal items, subject only to specific exclusions. Under the terms of this protection, the insurer must pay costs for the repair and replace walls, furniture, personal items, etc. that were damaged by water intrusion, up to the limits of the policy and after any deductible. The loss of coverage is used to cover additional costs homeowners have to pay while they get their home repaired. Overall, this type is an excellent home fire protection and is one of the best insurance companies in the market today.

Are there any Additional Coverages, Which I Can Claim?

This type of protection is very similar to the standard home insurance package, however, with a few exceptions. With the help of typical HO3 policy, you can claim repair and replacement costs for:

  • water damage caused to your home,
  • other structures of the property,
  • personal items (such as furniture, appliances or devices),
  • medical payments,
  • loss of use/additional living expenses.

The HO3 is referred to as the “Home Owners” protection, offering coverage for the main structure and for the separate structures. However, there are many dangers that are not covered by an HO3 policy, so understanding all nuances is critical.

When you are purchasing these services using home insurance calculators, your agent will recommend the appropriate protection that reflects the type and occupation of the structure that is going to be insured. Your type of insurance determines also the coverages available for its structure and contents. Not all types of policies include coverage for all risks (for example, fires, robberies, wind). That is why it is necessary to review specific risks and the amount of quotes with your agent when discussing your protection options.