HO-5 Homeowner’s Insurance Policy, The Best Coverage Available

We you look at insurance coverage for your home, you may be interested in getting the most coverage for the most things. Of course everyone wants to get all they can at the least cost.  The HO-5 insurance policy is a multi-line broad form policy; it may also be issued as an HO-3 broad coverage form with an HO-15 addendum or rider.

If you may or may not recall the HO-3 form is a broad form with coverage for open perils basis, giving broad coverage for a multitude of possible catastrophes.  The named perils that are covered are the following: Fire or Lightning, Windstorm or hail, Explosion, Riot or Civil Commotion, Aircraft, Vehicles, Smoke, Vandalism or Malicious Mischief, and theft, in addition it covers 17 other possible perils. The open perils cover all that, but not all that and a bag of chips.  Some of the policy coverage explicitly excludes coverage for home maintenance type issues; among those would be old roofs, rotted gutters, old paint, etc. The policy begins with the exception stated “…we do not insure loss caused by risks associated with home maintenance, unusual hazards, nuclear hazard, flood, etc” For instance, if your home is vacant more than thirty days, the coverage that would normally cover your home will lapse; So if you go on vacation for extended periods you may want to see if you can get additional coverage for your home.  Also note that flood insurance won’t cover seepage of water into your basement caused by back up of sewerage pipes.  That too, calls for additional coverage or a rider.  If you have a home that you are building, the coverage of an HO-5 will not cover theft of items you will want to purchase a builder’s risk policy for that type of coverage. An example of open perils that would include coverage would be for coverage of the loss of a diamond in a ring setting, even if it is lost or missing.

But let’s get back to the HO-5, it is considered the Mercedes of policies for homeowners for the coverage of open perils for the home and contents.  Contents are often excluded or have limitations on them for coverage; the HO-5 fills the gap and then some for the coverage needed or desired.  The HO-5 form also can’t be necessarily purchased by everyone, nor can it be purchased in every state. It is actually limited by some companies to newer homes, those with higher values, and those that are meticulously maintained. However, that being said, if you can get the HO-5 policy, you probably should.  It’s always best to have the most coverage available, and not need it then want the coverage or make a claim and not have coverage for it.

Ultimately, you as the policy owner should read, in detail your policy, when you receive it.  You need to make certain that coverage you purchased covers the things you wish to insure. The best way to do that is by getting the best and broadest form available, and that is the HO-5 policy. If you are wondering what the coverage costs, and if you can purchase it in the state you are in, direct your browser to http://www.homeinsuranceinsurance.com.