There are four commonly used home insurance policies in Frisco TX.
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HOA: Basic Named Perils Policy
The HOA Home Policy is the most basic and simple home insurance protection. The HOA policy will only protect you from 10 specific perils. (A peril is an event or disaster that causes a loss or damage to your home or property. A few of the most common perils are fire, theft, wind and hail). If something happens to your home other than the ten perils found below, you are not covered under the HOA.
HOA+: Broad Named Perils Policy
The HOA+ Home Policy provides broader coverage than the standard HOA policy. Like the HOA, the HOA+ still lists every peril you are protected from, but the list adds six more perils, for a total of 16 perils.
HOB: Basic Open Perils Policy
The HOB Home Policy is referred to as an open perils policy. That means instead of specifically listing the only perils you are protected from like the HOA or the HOA+, the HOB lists the perils your policy WON’T cover. If a peril isn’t listed as being excluded, your home is protected. The HOB home policy provides protection that is much broader than an HOA or HOA+ policy. It is most similar to the HO3 policy (see HO3, below) but with a slight advantage: An HOB policy typically includes additional water damage protection, such as damage resulting from slow, repeated leakage and sewer backup, which are things that an HO3 doesn’t automatically include. With the HOB, your home and possessions are protected from the same 16 perils that are listed in the HOA+ policy, as well as all other perils.
HO3: Basic Open Perils Policy
The HO3 Home Policy is a hybrid of an open perils policy and a named perils policy. Should you have a loss, this policy covers damage to your dwelling, unless the cause of loss is one of the explicitly excluded events listed on the policy. In addition, your personal property will be covered for the same 16 perils covered by the HOA+ policy.
The only real difference between the HO3 and the HOB homeowners’ insurance policy is the type of water protection that comes standard with the policy. Water Damage caused by continual & repeated seepage is normally excluded from HO3 homeowners’ insurance policies, unless added back by endorsement.
Three types of water damage can be endorsed (added back) to your policy. They are:
- Water Backup: Protects against water damage resulting if there is a sewer system backup and water pours out of your toilets and sinks.
- Foundation Coverage: Repairs your foundation if it has to be destroyed in order to fix a water problem in or under your foundation. This is typically only an important coverage if you would have to tear up the foundation to get to pipes, as you would with a slab foundation.
- Continual & Repeated Seepage: Protects against water damage resulting from a slow leak somewhere in the home.
At the Roger Welch Agency, we are happy to help you find the Texas homeowners policy that is right for you. Give us a call today at 972-380-6677 or visit our website for more information at www.rogerwelchagency.com.