If you’re planning to become a homeowner, one of the most important factors to consider is protecting your property. Not only because lenders usually require insurance to protect both your interests and theirs, but also because a home is often one of the largest investments of your life.
There are several types of homeowners insurance policies available, each designed to meet different needs. The HO3 policy is the most commonly used homeowners insurance policy, offering broad and balanced coverage for your home, personal belongings, and personal liability.
An HO3 policy is divided into several key coverage sections.
Dwelling coverage
This coverage protects the structure of your home, including walls, roof, and foundation, against sudden and accidental damage. Under an HO3 policy, the dwelling is covered on an open-peril basis, meaning everything is covered unless it is specifically excluded in the policy.
Other structures
This coverage protects structures that are not physically attached to your main home, such as detached garages, sheds, or pools. It’s an essential coverage for properties with additional structures.
Personal property
Personal property coverage protects your belongings, whether they are inside your home or temporarily outside of it. Under an HO3 policy, personal property is covered under named perils, meaning only the risks specifically listed in the policy are covered. This makes it important to carefully review and list valuable items when selecting coverage.
Personal liability
Liability coverage protects you if someone is injured on your property and you are found responsible. It also covers accidental damage you or a covered family member may cause to someone else’s property, helping with legal costs and settlements.
Additional living expenses
If your home is damaged by a covered peril and you are required to temporarily move out, this coverage helps pay for additional living expenses, such as hotel or rental costs, while your home is being repaired.
Whether you are buying your first home or already own one, having the right HO3 homeowners policy is essential for protecting your investment and peace of mind. At Calidad Insurance, we’re here to answer your questions and help you choose the coverage that best fits your needs.
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