HOB Homeowners Insurance
When you purchase your first home, you’re likely making the biggest financial decision of your life. On top of having to deal with the closing process and gathering all the money together, making sense of HOB homeowners insurance is something that needs to be at the top of your list.
HOB homeowners insurance is a popular option for many first time buyers. Use this simple guide to help you better understand what HOB homeowners insurance is and if it’s the right option for you.
Homeowners Insurance Coverage Basics
Home insurance is always a requirement when purchasing a home through a mortgage company. Even for cash buyers, home insurance is a good way to protect your investment.
While some of the more popular policies include HOB insurance, Mobile Home insurance and Condo insurance, all policies offer the following basic coverage:
Dwelling Protection: Coverage for your actual dwelling, just in case a fire breaks out or wind knocks your roof off.
Liability Protection: This section covers injuries to other people while on your property.
Personal Property: The personal property section covers items like electronics, furniture, and anything else of value within your home.
Other optional protection may include Earthquake insurance and flood insurance (both of which must be purchased as separate policies)
Understanding an HOB Homeowners Insurance Policy
In Texas, an HOB homeowners policy is best described as a hybrid policy. It combines certain items listed in both “open peril” and “named peril” insurance policies. Open peril insurance is a policy that names risks that are not covered, while a named peril policy lists risks that are covered.
Personal Property Coverage
This type of home policy offers coverage for personal property against 16 different named perils. Some of these perils include snow, ice, fire, falling objects and theft.
The actual dollar amount of coverage you’ll need will vary depending on the total value of items in your home. You can work with your insurance agent to determine what the right coverage is.
Other Coverage Options
HOB Homeowners insurance is a hybrid policy and therefore covers more than normal insurance policies do.
New home buyers often choose coverage for jewelry, credit cards, expensive furs, art pieces, collectibles and boats.
For the actual structure, an HOB homeowners insurance policy includes 100 percent of your home’s value as coverage for rebuilding purposes. For more information, click here.