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Types of Residential Property Insurance Forms
Your key residential property is likely the biggest investment you will make throughout your life time. Similar to all your investments, you have to take the correct steps to guarantee your assets are safeguarded. While a majority of house owners hold Florida residential property insurance, there are a variety of policy owners that have no idea of the dollar amount their residential property is insured for or just what is left out from their policy.
It is the home owner’s duty to inform themselves on the kinds of house owner insurance coverage that is offered in Florida.
While lots of residential property owners presume their insurance agent would certainly notify them if they are under insured, the fact is, it is the homeowner’s duty to evaluate policies yearly and make modification where necessary.
You ought to know that you are at serious risk for considerable economic losses if you are not covered correctly by your Florida home insurance. If you have a residential property and you are staying in it, there are a few kinds of property owner’s insurance plan types to select from. Understanding exactly what each type covers and which types are the most thorough will certainly provide you with valuable knowledge when you are looking around.
The Insurance Services Office has Standardized Residential Property Insurance Forms in General Use:
HO0 – Dwelling Fire Form Homeowner Policy
HO0 is a form that provides coverage on a home against fire, smoke, windstorm, hail, lightning, explosion, vehicles and civil unrest. It does not cover your personal property, personal liability or medical expenses. It is the type of policy your mortgage lender will buy for you if you let your homeowner policy lapse.
HO1 – Basic Form Homeowner Policy
A basic policy form that provides coverage on a home against 11 listed perils; contents are generally included in this type of coverage, but must be explicitly enumerated. The perils include fire or lightning, windstorm or hail, vandalism or malicious mischief, theft, damage from vehicles and aircraft, explosion, riot or civil commotion, glass breakage, smoke, volcanic eruption, and personal liability. Exceptions include floods, earthquakes. Most states no longer offer this type of coverage.
HO2 – Broad Form Homeowner Policy
A more advanced form that provides coverage on a home against 16 listed perils (including all 11 on the HO1). The coverage is usually a “named perils” policy, which lists the events that would be covered.
HO3 – Special Form Homeowner Policy
The typical, most comprehensive form used for single-family homes. The policy provides “all risk” coverage on the home with some perils excluded, such as earthquake and flood. Contents are covered on a named peril basis. (Note: “All Risk” is poorly termed as it is essentially named exclusions (ie, if it is not specifically excluded, it is covered))
HO4 – Tenants Form Homeowner Policy
The Tenants form is for renters. It covers personal property against the same perils as the contents portion of the HO2 or HO3. An HO4 generally also includes liability coverage for personal injury or property damage inflicted on others.
HO5 – Premier Homeowner Policy
HO5 covers the same as HO3 plus more. On this policy the contents are covered on an open peril basis, therefore as long as the cause of loss is not specifically excluded in the policy it will be covered for that cause of loss. (The same coverage can also be achieved by endorsing an HO15 to the HO3)
HO6 – Condominium Unit Owners Form
HO6 is the form for condominium owners. It insures your personal property, your walls, floors and ceiling against all of the perils in the Broad Form.
HO8 – Older Houses
The “Modified Coverage” form is for the owner-occupied older home whose replacement cost far exceeds the property’s market value.
Knowing the types of Florida residential property insurance policy forms is extremely important. While you may think you are receiving a competitive quote, you will not truly know unless you review the perils and exposures that are covered and how they are covered. Do your research and make a wise choice to protect your biggest investment.