Home Owner’s Insurance Policies – HO-3 and HO-5 Coverage Forms

Is your home policy an HO3 or HO5?

Many people do not realize that there are two types of home owner’s policies. An HO3 policy and an HO5 policy. When comparing rates, it is important to know the difference between the two to ensure you are comparing apples-to-apples. Sometimes, what looks like a financial savings, is just a different level of coverage.

“…what looks like a financial savings, is just a different level of coverage.”

HO3 policies only cover stated exposures; meaning if the policy forms says it’s covered, it is, but if the policy forms do not specifically state an exposure, there is not coverage. HO5 policies cover exposures that are NOT specifically excluded on the policy, therefore providing broader coverage. After all, isn’t the reason we buy insurance the unknown?

“…isn’t the reason we buy insurance the unknown?”

Guide Insurance Services will always quote an HO5 policy, if the home qualifies, because they are more inclusive and cover for the unknowns. Many of the endorsements (add-ons) available to an HO3 come included on an HO5 policy.

“Guide Insurance services will always quote an HO5 policy…”

In addition, an HO5 policy can make the claims process much simpler for those involved. Rather than the Insured having to prove how an event fits the description of one of the named perils, as is the case with an HO3, an HO5 provides coverage unless specifically stated as an exclusion on the policy.

“…an HO5 policy can make the claims process much simpler…”

The differences between an HO3 and HO5 are large, but not always easy to spot. Guide Insurance wants Insured’s to understand their coverages and for this reason, will offer a free policy, or quote, review upon request.  Simply follow the link below to request a free policy review.

http://www.guideinsuranceservices.com/personal/home-insurance/


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