HO3 Homeowners insurance policies explained (2024)

FAQs

HO3 Homeowners insurance policies explained? ›

HO3 policies typically pay for:

A homeowners insurance (HO-3) policy is a coverage plan that covers your home's structure, your personal belongings and liability in the event of damage or injury. Typically, an HO-3 policy will also cover additional living expenses and protection for other structures on your property.

HO-3 homeowners insurance covers you for a variety of other expenses related to your home beyond your physical property. Common coverages include personal liability, loss of use and medical payments. The most important of these remaining features is personal liability coverage.

Typically, the following are excluded on an open peril policy: Freezing pipes and systems in vacant dwellings. Damage to foundations or pavements from ice and water weight. Theft from a dwelling under construction.

An HO-2 policy puts The burden of proof is yours to prove that your loss was caused by one of the named perils. The HO-3, on the other hand, is what is called an "open" perils policy. Everything is covered except what is specifically excluded. For example - earth movement, flood, nuclear hazard, and war are excluded.

Property Removed

We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed. This coverage does not change the limit of li- ability that applies to the property being re- moved.

For your home and other structures, HO3 is an open-perils policy. That means your insurance company can pay for damage to your home unless it's caused by an event listed in the policy as an exclusion.

Weight of ice, snow, or sleet. Accidental water overflow or steam. Sudden and accidental tearing apart, cracking, burning, or bulging of certain household systems (e.g. plumbing, heating, air conditioning, etc.) Freezing.

In an HO2 policy, only perils listed in the policy are covered. In an HO3 policy, all perils are covered except for the exclusions listed in the policy. An HO2 is often called a “broad form policy,” whereas an HO3 is often called a “special form policy.”

The most common exclusions to a homeowners insurance policy are related to large-scale disasters, such as floods or war; damage due to negligence or normal wear and tear; and inherently risky items, such as trampolines.

What is not protected by most homeowners insurance? ›

Homeowners insurance doesn't cover floods, earthquakes, typical wear and tear, and damage due to insufficient maintenance. You can usually add flood and earthquake coverage to your policy for an additional fee, but wear and tear and damage from a lack of maintenance are considered preventable.

CorrectCorrect. An excluded peril under Section I of the HO-3 policy is theft of construction materials. In Section I—Exclusions of the HO-3 policy, there are three additional exclusions (weather, acts or decisions, and faulty workmanship) that apply only to Coverage A—Dwelling and Coverage B—Other Structures.

Homeowners insurance is a package policy. This means that it covers both damage to property and liability or legal responsibility for any injuries and property damage policyholders or their families cause to other people. This includes damage caused by household pets.

The HO-3 covers structures on an open peril basis. Hte HO-3 homeowners policy provides: Open peril coverage on the dwelling and broad form coverage on personal property.

The key difference is that HO-3 policies only provide open perils coverage for structures; your personal property is insured on a named-perils basis. HO-5 policies insure both your structures and personal property on an open-perils basis.

A DP3 policy covers the structure, loss of use or rental coverage, and usually personal liability.

An excluded peril under Section I of the HO-3 policy is theft of construction materials. In Section I—Exclusions of the HO-3 policy, there are three additional exclusions (weather, acts or decisions, and faulty workmanship) that apply only to Coverage A—Dwelling and Coverage B—Other Structures.