An HO3 is a type of home insurance policy that covers your home and other structures on an open-perils basis, and your personal property on a named-perils basis.
An HO3 policy is the one of the most common types of home insurance. The coverage is written on an open-perils basis for your home and other structures, which means it can cover any risks except for those specifically excluded in the policy. However, it typically offers named-perils coverage for your personal property, meaning it only covers damage to belongings caused by the events listed in your policy.
These policies are usually intended for the single-family homes, multi-family homes, and townhouses. The property owner must live in the home and not rent any part of it.
The first thing to know is home insurance is written on a variety of forms. These forms standardize coverage from insurance company to insurance company. Which form your agent uses for your home depends largely on how much coverage you need.
HO3 is typically used for owner-occupied homes because it offers reliable, affordable coverage for common risks.
HO3 policies typically pay for:
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. Some common HO3 policy exclusions are:
But coverage for the contents of your house is different. HO3 policies insure your personal property on a named-perils basis, meaning your insurer only pays for damage caused by events listed in the policy. Those named perils are usually the same 16 listed on an HO2 policy:
You can get open-perils coverage for your personal belongings by adding an endorsement to your policy.
You could also schedule your valuable items. Scheduled property is an insurance term that means your items are individually listed in the policy along with the amount of coverage each gets. When property is scheduled, an HO3 policy insures it on an open-perils basis.
One of the big benefits of an HO3 policy is that it offers replacement cost coverage for your home and other structures. Some HO3 policies default to insuring personal belongings for their replacement cost; others require you to add that on.
Instead of only paying out the depreciated value of your home or other structures like an actual cash value policy, replacement cost coverage pays what it really costs to replace or rebuild with similar, new items today.
Put another way: you'll actually have the funds you need to buy new replacements and rebuild your home after a loss.
Getting HO3 coverage for your home starts with understanding what it is you'd like to cover. If you're sure this is the policy you need, the next step is getting several HO3 quotes and comparing coverage options.
You’ve come to the right place! We offer HO3 policies in Florida and Louisiana. You can read more about it or get a quote for HO3 coverage on our homeowners insurance quote page.
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