Differences in HOA Policies? Know your Policy Coverages
There are 16 covered perils on a broad form policy. They are:
MOST COMMON POLICY TYPES:
HO-3 – Designates a “special form“ homeowners insurance policy that provides insurance coverage for the structure of your home on an “open-peril” basis. “Open-peril” means that you are covered against all losses except those that are expressly excluded in your policy. It’s important to note that your personal property is still covered on a “named-peril” basis with an HO-3 policy. This is the most common type of policy.
HO-4 – Simply speaking, this policy type describes a renters insurance policy. Typically, with these policies, your liability and your personal property are covered up to the policy limits. This is an ideal policy for someone renting an apartment or house.
HO-5 – Designates a “comprehensive form“ homeowners insurance policy. This policy type covers both your home and personal property on an “open-peril” basis. This is the broadest form of home insurance available. Given the comprehensive levels of coverage, this isn’t as common of a Home insurance policy as an HO-2 or HO-3 policy but is highly encouraged if you have valuable belongings.
HO-6 – Designates a condo insurance policy. These policies generally cover your personal property and the structure of your condo from the wall studs in. You should still consult with the agent quoting a policy for your home and as about the specifics of how that policy would apply.
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Best regards,
Jeffrey Von Stein, CPIA, AIC, CRE
