HO3 policy is a special type of policy that covers your home and also detached structures against any damage or loss caused by a peril as listed in your policy. HO3 policy is most commonly purchased by homeowners and has the provision to get much exclusion covered with special endorsements.
What are the exclusions in HO3 policy?
Normally HO3 policy is known as a ‘broad-risk form’ since it covers all perils except the exclusions of the policy. This is the reason why this policy is the most commonly bought policy amongst home owners.
The exclusions in HO3 policy includes:
1. Flood
2. Earthquake
3. Theft from an ‘under construction’ building
4. Vandalism and malicious mischief in case the building has not been occupied for more than 30 days
5. Freezing of pipes in a vacant or under construction building
6. Freezing, pressure from thawing or weight of water on a fence, patio, swimming pool, pavement or dock
7. Rodent infestation, deterioration, settling, bulging, crackling or expansion of the walls in the pavement, the wall or the foundation of the building or any damage caused to pets
8. Building or other structures used for business
9. Any damage that is caused purposefully
10. War
11. Nuclear accidents
12. Damage to animals, birds and fish
13. Damage to trucks, motorcycles, motorcycles, vans and boats
14. Failure to protect property after a loss
Ho3 policy is an open perils policy and would cover you for all perils that are not excluded in the policy. The main difference between an open peril policy and named peril policy is that in open peril policy you will be covered for every danger except those that are mentioned as excluded, while in a named peril policy you will be covered only for those perils mentioned in your policy.
Ho3 is purchased by most individuals for its vastness and the coverage that it provides. However, certain exclusions in HO3 policy can still be covered by purchasing additional policies. Like flood and earthquake can be separately insured. When you buy a home insurance, you must go through your policy documents to see what the policy includes and what it excludes so that you have no problems when you have to make a claim.
