HO-3 covers all risks except those named in the policy.
The premiums for various types of homeowners insurance, such as the HO-1, HO-2, and HO-3 policies, vary depending on the level of coverage they provide.
There are six distinct coverage sections in an HO-3 homeowners insurance policy: 1 Dwelling: protects your home and any other structures:
protects personal property, such as a garage or shed, from damage on your property. covers damage to personal belongings like appliances, furniture, and electronics. Loss of use:
covers your living costs in the event that your home becomes temporarily inhabitable. Personal liability: In the event that someone is injured on your property and sues you, this policy will cover your financial losses.
In the event that someone is injured on your property, HO-3 insurance policies are considered “open peril” policies, which means that they cover all risks except those specifically named. A “named peril” policy covers only the named perils when it comes to personal content coverage.
So, for instance, if a fire damaged your home, your HO-3 coverage might cover the costs of fixing it and replacing any personal belongings.
In the event that your home is uninhabitable while it is being repaired, it may also assist you in paying for a place to live. However, you would not be covered if a flood caused damage to your home and was listed as an exclusion on your HO-3 policy.
