The following is a basic outline of the HO-3 policy,
which is the standard for coverage to protect our Homeowner’s.
An HO-3 is available for one or two family homes that are owner-occupied.
The HO-3 policy provides coverage for many perils including Fire,
Windstorm, Hail, Aircraft Damage, Riots or Civil Commotion, Vehicle
Damage, Explosion, Smoke, Vandalism and Malicious Mischief, Theft,
Ice Damage, Water Damage and Collapse.
DWELLING COVERAGE
This amount of coverage applies to the dwelling and the attached
structures. The limit is representative of the amount it would cost
to replace the dwelling, if you were to rebuild it, but does not
include the cost of the land.
OTHER STRUCTURES
This coverage amount applies to detached structures, such as a
garage or a storage unit, located on the property. The limit is
automatically provided at 10% of the Dwelling Coverage amount, but
may be increased, if necessary.
PERSONAL PROPERTY
This coverage amount provides worldwide coverage for personal property
of the insured. Special limits apply to some types of property (for
example jewelry, furs, collectibles), and some property is excluded
from coverage. The limit provided under this coverage is 50% of
the dwelling limit. This amount can be increased, if necessary.
LOSS OF USE
This coverage amount applies in the event of a loss due to damage
from a fire, storm, or other insured disaster. This covers the additional
living expenses incurred while the dwelling is being rebuilt. Included
in this amount are hotel bills, restaurant meals and other living
expenses. If you rent out some of your dwelling, this coverage also
reimburses you for the rent that you would have collected from the
tenant if the dwelling had not been destroyed. The limit provided
under this coverage is 20% of the dwelling limit.
PERSONAL LIABILITY
This limit of coverage evidences coverage in the event of lawsuits
for bodily injury or property damage that you or your family members
cause to other people. This portion of coverage pays for both the
cost of defending you in court and any court awards, up to the limit
of your policy.
The policy also provides limited no-fault medical coverage, in
the event a friend or neighbor is injured in your dwelling. This
way, medical bills may be paid without them filing a claim against
you.
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