Homeowners Insurance Explained

The homeowners policy is a package policy that offers cover for the dwelling, personal property, other structures, loss of use and liability with medical coverage.

Below are the most popular homeowner policies written today. Feel free to review the coverage’s and call my office with any questions you might have. Congratulations’ to all NEW Homeowners!

HO3

An HO3 policy is the most commonly used homeowners insurance policy, protecting you, your family, and your property against several problems that could damage your property. COVERAGE PROVIDED FOR YOUR HOME YOUR RESIDENCE COVERED ON REPLACEMENT COST BASIS WHEN INSURANCE IS 80% OF REPLACEMENT COST VALUE GARAGE, OTHER BUILDINGS ON PREMISES, BUT NOT USED FOR BUSINESS; 10% OF RESIDENCE INSURANCE PERSONAL PROPERTY AND POSSESSIONS OF YOUR FAMILY AT YOUR HOME; 50% T0 70% OF RESIDENCE INSURANCE PERSONAL EFFECTS AWAY FROM HOME, BUT IN SOME AREAS TO LIMITS LESS THAN THOSE AT HOME EXTRA LIVING EXPENSES WHILE HOME IS UNTENANTABLE AFTER COVERED CLAIM 10% TO 20% OF RESIDENCE COVERAGE: LIVING IN MOTELS & FOOD EXPENSES COVERAGE FOR THESE PHYSICAL DAMAGE LOSSES, GLASS, VANDALISM AND CRIME FIRE OR LIGHTING WINDSTORM OR HAIL EXPLOSION LOSS BY NON-OWNED CARS BREAKAGE OF WINDOWS, ect. RIOT or CIVIL COMMOTION: INCLUDING LOSS BY PILLAGE OF LOOTING DAMAGE BY AIRCRAFT: INCLUDING MISSILES OR SPACECRAFT SMOKE DAMAGE: FROM YOUR HEATING OR COOKING UNITS VANDALISM: DAMAGE DUE TO MALICIOUS MISCHIEF THEFT: INCLUDING BURGLARY AND ROBBERY   PERSONAL LIABILITY INSURANCE TO COVER (bodily injury & property damage)   CLAIMS FOR INJURIES: TO TRADESMEN, GUEST OR OTHER PERSONS INJURED BY OCCURRENCE AT YOUR HOME OFF PREMISES INJURIES: TO OTHERS ARISING FROM ACTS OF MEMBERS OF YOUR FAMILY, PETS, ANYWHERE MEDICAL EXPENSES: FOR INJURIES TO OTHERS AT YOUR PREMISES OR FROM YOUR ACTIVITIES- LIABLE OR NOT COSTS OF DEFENDING SUITS: INCLUDING ATTORNEY FEES, ect., UNTIL COVERAGE IS EXHAUSTED, LIABLE OR NOT DAMAGE TO PROPERTY: OF NEIGHBORS OR OTHERS CAUSED BY ANYONE IN YOUR FAMILY LIABLE OR NOT IT ALSO COVERS AGAINST THESE IMPORTANT “BROAD FORM” PERILS   BROAD THEFT: INCLUDING LOSS OF PROPERTY FROM KNOWN PLACE WHERE PROBABILITY OF THEFT EXISTS BROAD VEHICLE DAMAGE: COVERING DAMAGE TO YOUR HOME, BY CARS OWNED OR OPERATED BY YOUR FAMILY BROAD SMOKE DAMAGE: COVERING ALL SMOKE LOSSES, EXCEPT AGRICULTURAL OR INDUSTRIAL OPERATIONS HEATING OR HEATER LOSSES: EXPLOSION, ect., OF STEAM OR HOT WATER HEATING SYSTEM AND APPLIANCES WEIGHT OF SNOW: LOSS DUE TO WEIGHT OF ICE, SNOW OR SLEET TO BUILDINGS AND CONTENTS COLLAPSE: LOSS DUE TO COLLAPSE OF BUILDINGS, INCLUDING DAMAGE TO GUTTERS, DOWNSPOUTS FALLING OBJECTS: DAMAGE CAUSED BY FALLING REES OR OTHER OBJECTS FROM AN OUTSIDE SOURCE WATER DAMAGE: FROM LEAKAGE OR OVERFLOW OF PLUMING, HEATING, AIR CONDITIONING SYSTEMS, ect. FREEZING: OF PLUMING, HEATING, AND AIR CONDITIONING SYSTEMS AND APPLIANCES ELECTRICAL INJURY: TO APPLIANCES (not tubes, transistors) FROM ARTIFICIALLY GENERATED ELECTRICITY ALL PHYSICAL DAMAGE COVERAGE ON YOUR RESIDENCE WATER SEEPAGE: IN ATTIC DURING SUDDEN DOWNPOUR CAUSES PLASTER CEILING TO COLLAPSE SPILLAGE OF CHEMICALS: SPILLED BLEACH SPOTS AND DISCOLORS TILE FLOOR IN YOUR FAMILY ROOM OVERHEATED APPLIANCE: FAILURE OF THERMOSTAT CAUSES COFFEE MAKER SCORCH KITCHEN COUNTER ACCIDENTAL DAMAGE: SEPTIC TANK IS STRUCK, PUNCTURED AS TREE IS BEING PLANTED IN YOUR YARD OTHER ACCIDENTAL LOSSES: TO YOUR RESIDENCE WHICH ARE NOT SPECIFICALLY EXCLUDED UNDER YOUR POLICY This is the HO3 Homeowners policy. It provides the best protection for your residential buildings with broad perils coverage for your personal property.

HO5

An HO5 policy is a type of premium insurance policy that provides broader protection and higher coverage limits than your typical homeowners policy. COVERAGE PROVIDED FOR YOUR HOME YOUR RESIDENCE COVERED ON REPLACEMENT COST BASIS WHEN INSURANCE IS 80% OF VALUE GARAGE, OTHER BUILDINGS ON PREMISES, BUT NOT USED FOR BUSINESS; 10% OF RESIDENCE INSURANCE PERSONAL PROPERTY AND POSSESSIONS OF YOUR FAMILY AT YOUR HOME; 50% to 70% OF RESIDENCE INSURANCE PERSONAL EFFECTS AWAY FROM HOME, BUT IN SOME AREAS TO LIMITS LESS THAN THOSE AT HOME EXTRA LIVING EXPENSES: 20% OF RESIDENCE INSURANCE WHILE HOME IS UNTENANTABLE AFTER DISASTER: LIVING IN MOTELS AND EXTRA FOOD EXPENSES COVERAGE FOR PHYSICAL DAMAGE LOSSES, GLASS, VANDALISM AND CRIME   FIRE OR LIGHTING WINDSTORM OR HAIL EXPLOSION LOSS BY NON-OWNED CARS BREAKAGE OF WINDOWS, ect. RIOT or CIVIL COMMOTION: INCLUDING LOSS BY PILLAGE OF LOOTING DAMAGE BY AIRCRAFT: INCLUDING MISSILES OR SPACECRAFT SMOKE DAMAGE: FROM YOUR HEATING OR COOKING UNITS VANDALISM: DAMAGE DUE TO MALICIOUS MISCHIEF THEFT: INCLUDING BURGLARY AND ROBBERY PERSONAL LIABILITY INSURANCE TO COVER (bodily injury & property damage)     CLAIMS FOR INJURIES: TO TRADESMEN, GUEST OR OTHER PERSONS INJURED BY OCCURRENCE AT YOUR HOME OFF PREMISES INJURIES: TO OTHERS ARISING FROM ACTS OF MEMBERS OF YOUR FAMILY, PETS, ANYWHERE MEDICAL EXPENSES: FOR INJURIES TO OTHERS AT YOUR PREMISES OR FROM YOUR ACTIVITIES, LIABLE OR NOT COSTS OF DEFENDING SUITS: INCLUDING ATTORNEY FEES, ect., UNTIL COVERAGE IS EXHAUSTED, LIABLE OR NOT DAMAGE TO PROPERTY: OF NEIGHBORS OR OTHERS CAUSED BY ANYONE IN YOUR FAMILY LIABLE OR NOT IT ALSO COVERS AGAINST THESE IMPORTANT “BROAD FORM” PERILS BROAD THEFT: INCLUDING LOSS OF PROPERTY FROM KNOWN PLACE WHERE PROBABILITY OF THEFT EXISTS BROAD VEHICLE DAMAGE: COVERING DAMAGE TO YOUR HOME, BY CARS OWNED OR OPERATED BY YOUR FAMILY BROAD SMOKE DAMAGE: COVERING ALL SMOKE LOSSES, EXCEPT AGRICULTURAL OR INDUSTRIAL OPERATIONS HEATING OR HEATER LOSSES: EXPLOSION, ect., OF STEAM OR HOT WATER HEATING SYSTEM AND APPLIANCES WEIGHT OF SNOW: LOSS DUE TO WEIGHT OF ICE, SNOW OR SLEET TO BUILDINGS AND CONTENTS COLLAPSE: LOSS DUE TO COLLAPSE OF BUILDINGS, INCLUDING DAMAGE TO GUTTERS, DOWNSPOUTS FALLING OBJECTS: DAMAGE CAUSED BY FALLING REES OR OTHER OBJECTS FROM AN OUTSIDE SOURCE WATER DAMAGE: FROM LEAKAGE OR OVERFLOW OF PLUMING, HEATING, AIR CONDITIONING SYSTEMS, ect. FREEZING: OF PLUMING, HEATING, AND AIR CONDITIONING SYSTEMS AND APPLIANCES ELECTRICAL INJURY: TO APPLIANCES (not tubes, transistors) FROM ARTIFICIALLY GENERATED ELECTRICITY ALL PHYSICAL DAMAGE COVERAGE ON YOUR RESIDENCE WATER SEEPAGE: IN ATTIC DURING SUDDEN DOWNPOUR CAUSES PLASTER CEILING TO COLLAPSE SPILLAGE OF CHEMICALS: SPILLED BLEACH SPOTS AND DISCOLORS TILE FLOOR IN YOUR FAMILY ROOM OVERHEATED APPLIANCE: FAILURE OF THERMOSTAT CAUSES COFFEE MAKER SCORCH KITCHEN COUNTER ACCIDENTAL DAMAGE: SEPTIC TANK IS STRUCK, PUNCTURED AS TREE IS BEING PLANTED IN YOUR YARD OTHER ACCIDENTAL LOSSES: TO YOUR RESIDENCE WHICH ARE NOT SPECIFICALLY EXCLUDED UNDER YOUR POLICY ALL PHYSICAL LOSS COVERAGE ON YOUR PERSONAL PROPERTY IRRECOVERABLE LOSS: OF SPORTS EQUIPMENT, CAMERA, OTHER PROPERTY IN DEEP WATER, OVER CLIFFS, etc. DAMAGE BY WILD ANIMALS: (except for rodents) THAT INVADE YOUR HOME, DAMAGE OR DESTROY FURNISHINGS LOSS DUE TO SPILLAGE: OF PAINT, INK, OR CHEMICALS THAT MAY RUIN CARPETS, DRAPERIES, OR FURNITURE OTHER ACCIDENTAL LOSSES: TO YOUR PERSONAL PROPERTY WHICH ARE NOT SPECIFICALLY EXCLUDED THE RIGHT TYPE OF HOME INSURANCE AND ADDITION OF SPECIAL COVERAGE’S MAKES SURE THE PROTECTION FITS YOUR NEEDS Insurance to Value assures you that you will not have to sacrifice your savings or go heavily in debt because losses are only half-insured. Moreover, it may save additional dollars when losses occur, since residence claims will be settled on a cost of replacement basis (no deductions for depreciation) when amount of insurance is not less that 80% of replacement cost. Keeping your Homeowners policy up-to-date is especially. important in today’s inflationary economy.
  • Don’t overlook the fact that your insurable values increase every time you decorate, remodel or add a room to your home.
  • Your new purchases such as furniture, furnishings, clothing, appliances and other personal effects add to the personal property values in your home.
  • And check your insurance coverage periodically to be certain your home is adequately insured.
Since modern Homeowners policies are designed for average families, other insurance may be needed to cover special property or risks. NOTE: Under the Homeowners policies, theft of unscheduled jewelry and furs is limited to $1000. There is a limit of $2,500 on silverware and $2,000 on guns. These limits, usually, may be increased by endorsement. Theft coverage is generally excluded from property you rent to others and it does not apply ,to watercraft, its equipment or furnishings, outboard motors or trailers. A Scheduled Personal Articles endorsement will provide “all risks” protection for the full appraised value of prized possessions such as: Jewelry, furs, fine arts, cameras, silverware, guns, musical instruments, coin or stamp collections or precious metals. “All risks” coverage differs from “named perils” coverage in that the former includes all risks of physical loss to property covered except for specific exclusions or limitations written in the contract. NOTE: Under the Homeowners policies, theft of unscheduled jewelry and furs is limited to $1000. These limits usually may be increased by endorsement. Theft coverage is generally excluded from property you rent to others and it does not apply ,to watercraft, its equipment or furnishings, outboard motors or trailers. Away from your premises unscheduled personal property is covered anywhere in the world but in some areas and under some circumstances to limits less than the insurance applicable to property at home. Money, coin ‘collections and precious metals are covered to $200, Securities $1000; Watercraft and trailers, $1000 (for named perils only); but these limits may be increased for an extra premium. Homeowners forms do not cover automobiles. Away from your premises unscheduled personal property is covered anywhere in the world but in some areas and under some circumstances to limits less than the insurance applicable to property at home. Earthquake Damage endorsement may be added to your policy when the coverage is essential or important for your protection. Secondary Residences and furnishings or additional residences in the same state may be included under your policy to cover physical damage losses and, regardless of the location of the property, liability exposures. Property coverage for an additional residence out-of-state may be provided by a separate Homeowners policy. Business Pursuits—Provision may be made under your Homeowners policy to cover physical damage losses and liability risks for certain office, professional, private school or studio situations. The Loss Deductible clause in your policy tends to check higher rates and enables you to have sound protection at reasonable cost. Personal Umbrella Liability insurance, or higher liability limits, is recommended for business and/or professional men and women. Recreational, and other vehicles such as snowmobiles, dune buggies, swamp buggies and all-terrain vehicles are excluded under Homeowners policies and require special insurance policies or endorsements. Large travel trailers, Motor Homes, self-propelled campers, pick-up campers and large or powerful boats need to be covered under specific insurance policies that provide broad property and liability coverage. You have only limited property coverage under the Homeowners policies for simple types of camping trailers.

Dwelling Fire

In some cases you may need a “Dwelling Fire” policy. These policies are line by line coverage that you chose instead of a “package” like the homeowner. Case in point would be a vacant home a rental or a seasonal property. We can help you with these types of coverage’s too.

This is a simple breakdown of the ISO homeowner policy forms. Some references my be out of date or incorrect as the HO policy forms have changed over the years and will continue to change. Please contact your agent for a more specific detail of your homeowner policy.      01/2015. Start Your Home Insurance Quote Now Or call 1-877-901-5544