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Explanation of the differences between HO-3 and HO-6 home insurance coverage

HO-6 Vs. HO-3 Home Insurance

Finding the right home insurance is crucial if you want to get the best protection for your home. There are different types of home insurance policies and some may provide more coverage than others. One of the common information homeowners want to know is the difference between HO-3 and HO-6 home insurance policies.

HO-3 Home Insurance

One of the most popular home insurance policy is an HO-3. This is also known as a standard home insurance and many homeowners prefer this over any other type of policy. It is easy to see why HO-3 is the best choice, that is because this provides the most extensive coverage including protection for your home, yourself, and the people inside your property. HO-3 is a best for homes that are occupied by the owner, as well as, 1-to-4 dwelling like apartment complexes.

HO-3 insurance provides coverage for at least six general types of loss including:

  • Dwelling – Protects your home’s structure including attached fixtures.
  • Unattached Structures –  Covers unattached structures within your property. Common other structures are small sheds, fences, driveway, detached garage, and similar structures.
  • Personal Property – Covers for your home contents (up to your policy limit) including items like appliances, clothes, furniture, and more.
  • Personal Liability – Protects you against lawsuits that may arise due to the accidents that occur within your property.
  • Loss of Use – Your insurance company will reimburse your expenses in case you are unable to stay in your home due to repairs or rebuilding.
  • Medical Payments to Others – You will be reimbursed in case guests are injured while they are inside your property.

An HO-3 also has multiple limits or exclusions on covered losses. So it is crucial that you inquire from your insurance agent on what these limits are. Under this policy, there is a limit to the coverage on some items inside your home including collectibles, valuables, and other expensive items. So items like firearms, jewelry, fur, coins, art will only have a predetermined limit coverage. Moreover, while HO-3 is an open peril policy, it does not cover specific losses, these include:

  • Mysterious Disappearance
  • Accidental Breakage of Antiques and Fine Arts
  • Theft of Items Under Limited Coverage such as jewelry, collectibles, and valuables

HO-6 Condo Home Insurance

An HO-6 is an insurance that is specifically made for owners of condominium units. Also known as condo insurance, this is the perfect choice if you want total protection for your unit. Insurance coverage for condominiums is typically not required by the government but many condo associations may need you to secure it. Additionally, it may also be a requirement if you need to get a mortgage loan for your condominium.

HO-6 is also typically known as “walls-in” insurance policy as it basically covers everything within the interior of your condominium unit. This is a named-peril policy which means all the risks listed under the policy is covered. Some of the most common risks that are covered under HO-6 are:

  • Physical Damage – If your condo has incurred any physical damage due to fire and smoke damage, wind and hail, explosions, vandalism, theft, riots or civil commotion, aircraft and car damage, lightning, and burst pipe.
  • Personal Property – protects items inside your home in case of damage due to a covered loss.
  • Liability – Provides protection if a claim is brought towards you due to an injury or damage that happened within your condominium.
  • Loss of Use – Will compensate you for any additional expenses if you are unable to stay in your home while it is being repaired.
  • Medical Payments to Others – Will provide medical reimbursement if someone is injured in your condominium.

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