The HO-3 has been the standard homeowners insurance policy since the 1950s, and is adequate for most homeowners personal insurance needs. For older homes, it’s still a good choice. But today, there’s something much better, particularly for newer, well-maintained homes. It’s known generically as the HO-5 homeowners insurance policy.
While the HO-5 is offered only on a limited basis – to newer homes (typically built within the past 30 years), those with higher values, those meticulously maintained should protect yourself with this broader HO5 homeowners insurance policy form. In some cases, depending on the year of construction, the town you live in, your claims history, and other rating factors, you can buy an HO-5 for about the same cost as a traditional HO-3.
The starting point of the HO-5 is how it covers your Contents, (also known as Personal Property on your policy page). While the HO-3 covers your Contents on a “named perils” basis, the HO-5 covers contents on an “open perils” basis.
In addition, many of the limitations of the HO-3 are removed, existing coverages expanded, and new coverages added. Several common provisions that have had to be added to the HO-3 by specific endorsement are included automatically in the HO-5. For example, with an HO-5, you don’t have to check to see if “replacement cost” coverage on your home and on your contents has been added to your policy. The HO-5 includes it automatically.
Since insurance is to protect you from the unexpected, it’s better to get it before it is too late! Contact one of our consultants for a friendly review today! Click here to contact us.