There are many different home insurance policies to choose from in Texas. The HOB insurance policy provides the broadest form of protection for people’s homes and property. However, insurance policies can be rather confusing, and many homeowners do not understand the specific ways that HOB policies differ from others that are available. There are a number of things that make them unique and highly beneficial when damage to a home or property occurs.
Differences between HOB and HOA Insurance
HOB and HOA are the two most popular types of policies in Texas, and they are somewhat similar. However, HOA insurance is designed to protect people when specific types of damage occur, and the only way that homeowners can be reimbursed when a home is damaged is if the cause is mentioned in the contract. There are generally ten types of damage that are covered under HOA insurance in Texas, and these include things like theft, vandalism, explosions and fire. In addition, HOA insurance will only pay out the value of loss according to what items are worth at the time the incident happened. With this, the value is calculated based on the age and condition that things are in when they are affected.
HOB insurance is different in that it contains a list of exclusions and will pay out if damage is not caused by anything on the excluded list. Commonly excluded circumstances that an HOB policy will not cover include things like deterioration, sinking foundations, war, power failures and earth movements. However, damage caused by anything that is not included on the list of exclusions will be covered under these policies, and people will receive the amount of money needed to replace damaged items. With this, HOB insurance will offer people significantly more protection than an HOA policy, and this is particularly true if people are moving to an area in Texas where potential hazards to the home are not well documented.
Similarities between HOB and HOA Insurance
One way that HOA and HOB insurance are similar is the way that they deal with damage to personal property. With both types of policies, there will be a list of specific things that are covered. Common circumstances that are covered with both HOB and HOA insurance include things like theft, falling objects, civil disturbance, explosions, smoke, hail, wind, fire and lightning. Anything that is not specifically included on the list will not be covered under either type of insurance policy. However, it is possible to purchase additional coverage if needed.
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