HO-B Policy - Does it Provide Cover for Every Damage?

The HO-B coverage or home owner's coverage is a standard policy covering your house for damages that might occur. This policy has been adopted by the Texas Insurance Department (TDI).The insurance companies should use standard forms approved by TDI.

Standardized Policies

The standardized policies sold in Texas are as follows:

• HO-A-Provides limited coverage to items that are specifically mentioned in your policy.
• HO-A Amended- This policy provides more coverage than the normal HO-A, but less than HO-B.
• HO-B- this policy covers almost all the damages that might occur to your home
• HO-C- this policy also covers extensive damages but is expensive.

Coverage by HO-B

The HO-B policy covers almost every calamity that might damage your house. It covers damages due to vandalism,theft,lightening,fire,explosions,windstorms,damage caused by vehicles that got out of control, frozen pipes, Plumbing disasters like leaking or overflowing pipes, air conditioning and heating appliances and also certain aesthetic repair works. The policy also covers additional costs like additional living expense which the family has to bear in cases of temporary shifting of family due to repair work at home. In this condition, the HO-B covers up to 20% of food and lodging expenses, till the family moves back to their home.

HO-B Versus HO-A

The HO-A policy has limited coverage unlike HO-B.It covers damages caused due to lightening, fire, hail, wind, theft, vehicles and riots. If you want additional coverage, then you must approach the TDI.

In a HO-B policy, the insurance company pays for the entire replacing or repair work excluding your deductible. In case of damage, the HO-A policy pays only for replacement excluding the depreciation value and deductible. If you want more coverage through HO-A, you must upgrade your policy by contacting your insurance company.

HO-B Policy Versus Modified HO-B

The new modified HO-B policy covers damage caused due to mold which could occur due to water leakage in your home. You must be clear about the conditions in your home so that you can claim for them. If you do not report water seepage in your home then your claim would be rejected. However the new policy does not cover treatment, testing and disposable of mold costs. These can be covered by 'back coverage' .The new modified HO-B policy is reducing costs to a considerable extent. It is possible to change from your existing original HO-B to modified HO-B.Consult your insurance company in this regard.

Damages Not Covered By The Policies

Some of the damages like the damage caused due to insects, termites, mice, rats, breakage of frozen pipes when you are not in the house, repeated water seepage, maintenance costs, earthquakes and floods are not covered.

Residential Policies

The residential policies that are available are as follows:

• Mobile homes policy
• Town houses policy
• Renters
• Condominiums
• Farm and ranch owners

Mobile homes policy

The mobile owner's policy has a very limited coverage and it includes mobile homes that are stationary at a place, without wheels.

Farm and ranch owners' policy

This policy covers farm land outside the city. Farm equipment can also be covered by this.

Keeping Inventory

Always keep an inventory of all the items in your home. This will help you to decide the kind of insur ance coverage you want and also makes it easy to claim. The inventory should contain the list of items and their values and also pictures or video shoots of the entire interiors of your room including your garage. Receipts should be carefully preserved.

Continue to:Benefits of HO-B Policy