 | John Eck
is the owner of the ECK Agency, Inc., which is an independent insurance agency representing over 80 companies offering life, health, property & casualty insurance. Beginning his career in 1968, he is a Certified Insurance Counselor, a licensed Kansas insurance broker, and has held numerous positions with other related business ventures. Currently an active member of his local School Board, he has also held elected positions on the City Council and Hospital Board in past years. John can be reached at his office by phone at (800) 444-4911, or you may e-mail him at: eck@eckagency.com |
Insurance
2006-02-01 15:30:00
Ask the insurance man-series
ANSWER: Different types of homeowner policy forms are referred to generally as HO-1, HO-2, HO-3 and so forth. There are seven basic kinds of home insurance policies and are pretty much the same regardless of which companies provide the coverage. Some companies may have slightly different limits and exclusions within the policy, but the perils insured against for each form are similar.• HO-1. Basic homeowners. Covers your dwelling and personal property against losses from 11 types of perils: fire or lightning; windstorm or hail; explosion; riot or civil commotion; aircraft; vehicles; smoke; vandalism or malicious mischief; theft; damage by glass or safety glazing material that is part of a building; and volcanic eruption.• HO-2. Referred to as ‘Broad Form’ coverage. Includes all the perils as the basic plus six more: falling objects; weight of ice, snow or sleet; three categories of water-related damage from home utilities or appliances; and electrical surge damage.• HO-3. Referred to as the 'Special or Open Peril Form'. this form covers all perils to the home unless the peril is specifically excluded in the form (such as earthquake, war, flood, etc.) This is possibly the most common type of Homeowner policy written.• HO-4. Referred to as the 'Renters form'. This insures a renters contents against the perils listed under the 'Broad Form' coverage• HO-5. Referred to as the 'Special or Deluxe Form'. This provides the same coverage as the form HO-3 but it extends the coverage to the homeowners perosnal effects as well as the structure. This is the most comprehensive form.• HO-6. Condominium coverage. Covers personal property from 17 listed perils along with certain building items in which the unit owner might have an insurance interest.• HO-8. Basic older home. Covers dwelling and personal property from 11 perils. Differs from HO-1 in that it covers repairs or actual cash values - not rebuilding costs. This is for homes where some historic or architectural aspects make the home's replacement cost significantly higher than its market value.An important thing to remember is that it is very important to insure your home to the amount it would cost today to rebuild it. Even though the market value may be lower, by insuring to replacement value, you are assuring yourself that you will be paid what it will take to fix your home after a loss with you only paying the deductible.
