HO-3 Policy - Exposed to Risks?

The home owner's Insurance policy provides coverage to your home for damages that might occur due to various causes. There are various standardized policies sold by the Texas Insurance Department for the benefit of everyone. Each policy is tailor made to suit your specific needs. There are low cost home insurance policies that are affordable and easy to manage in your budget.

THE TYPES OF HOME INSURANCE POLICIES

The types of home owner's insurance policies are as follows:

• HO-1 Policy
• HO-2 Policy
• HO-3 Policy
• HO-6 Policy

The Standard Home Owners Insurance Policies

The standard types of home owner's insurance policies are as follows:

• HO-A
• HO-A Amended
• HO-B
• HO-B Modified

HO-3 PROPERTY INSURANCE POLICY

This is the most important and popular home owner's property insurance policy in the United States. It is also called as all risk Policy.

The Gallup and Casey Insurance services In Massachusetts have described the HO-3 property Insurance policy under coverages as follows:

Coverage A

This includes all policies except HO-4 and limited HO-6.It gives you the replacement cost of the house. Immovable or fixed objects in your house are covered under this coverage. This value is around 8000 $ minimum.

Coverage B

This includes structures like barn and garage. and is a part of the standard home owner's insurance policy. The value of this coverage in HO-3 policy is 10% of coverage A.

Coverage C

This provides coverage to the personal property in your house and its value is 50% of coverage A.

Coverage D

This is also called as Loss of use. It covers all the additional living expenses which might occur when the family moves out of their house into a new home temporarily to fix damage of their house. This value is 20% of coverage A.

Coverage E

This is personal liability coverage and it covers legal expenses. A minimum value of 100,000$ is necessary for this. For added coverage you can opt for umbrella insurance.

Coverage F

this policy covers medical expenses if any person is injured on your property. The value of coverage is 1000$ minimum.

Continue to: Basic Coverages of HO-3 Policy