HO Policy Types

H0-5

"Comprehensive form" of homeowners insurance; provides all-peril coverage for both structures and contents.

H0-6

"Condo" or "unit owner's form"; named-peril homeowners policy covering personal property and the surface structure of a condominium.

H0-4

"Contents broad form"; named-peril renter's policy covering only personal property and any structural improvements made at the tenant's own expense.

H0-8

"Modified coverage form" of homeowners insurance; named-peril coverage for structures and contents, fewer perils covered.

H0-3

"Special form" of homeowners insurance; all-peril coverage for structures, named-peril coverage for contents.

Texas HO-A Homeowners Policy

HO-A policies are very basic homeowners policies; they provide actual cash value (ACV) coverage on a named-peril basis for your home and personal property. HO-A policies do meet the minimum insurance requirements of most mortgage lenders, and they are generally the most economically affordable policies on the market. As such, they also offer the policyholder the least amount of protection. Many first time home buyers choose the HO-A policy because of its affordability. The standardized Texas HO-A Policy is similar to the ISO HO-2 (named perils) Policy. The perils it covers include: Fire Lightning Hail Windstorms Riot and civil commotion Explosions Vandalism and malicious mischief Damage from vehicles and aircraft Under this policy, Coverage A covers the Dwelling, as well as Other Structures on the property. Coverage for Other Structures is limited to only 10% of the Coverage A limit, but it is additional insurance, meaning that it does not take away from the amount of coverage available for the Dwelling. Coverage B is for personal property. This coverage is limited and does NOT include: Mysterious disappearance of property at any location Theft by the insured (i.e. family members, guests stealing property off premises) Theft while not residing at an insured premises Theft by renters Additional Living Expenses (ALE) or "loss of use" coverage is limited to 10% of the Dwelling limit.

Texas HO-C Homeowners Policies

HO-C policies are the most expensive standardized homeowners insurance policies issued in Texas, but they provide the most thorough insurance coverage of the four packages. The Texas HO-C policy offers open-peril coverage for Coverage A-Dwelling and Coverage B-Personal Possessions. Like the Texas HO-B policy, the HO-C policy offers replacement cost coverage for Coverage A and actual cash value coverage for Coverage B. As usual, replacement cost coverages include the 80% co-insurance requirement. Loss of use coverage is equal to 20% of the Coverage A (dwelling) limit.

HO-2

The "broad" form of homeowners insurance; a basic, named-peril HO form that nevertheless is less limited than the HO-8.

Texas HO-A Amended Homeowners Policy

The HO-A Amended policy, or HO-A+ policy, is very similar to the HO-A policy. Like the HO-A, this form provides actual cash value coverage for your home and personal possessions on a named-peril basis only, but it expands coverage by protecting against a broader array of perils. Unlike the other three Texas HO forms, the HO-A Amended policy is not standardized, meaning that insurers may change the coverage it offers. These additional covered perils include: Building collapse Objects falling because of the weight of snow, ice, or sleet Falling trees or limbs Breakage of glass Freezing of a plumbing system Sudden and accidental rupture of a hot water system Damage by vehicles caused by an insured or tenant of the insured premises Sudden and accidental discharge of water from a plumbing, heating, or air conditioning system or household appliance

Texas HO-B Homeowners Policies

The Texas HO-B Homeowners Policy is the most popular policy issued in Texas, as it provides a thorough range of protections and replacement cost coverage for dwellings. This policy offers open perils coverage for Coverage A (Dwelling) and named perils coverage for Coverage B (Personal Property). Texas HO-B policies also provide replacement cost valuation for dwellings and actual cash value coverage for personal possessions. Remember, however, that in order to get replacement cost coverage, the homeowner must maintain the 80% level of co-insurance. Loss of use coverage is 20% of Coverage A (Dwelling). In addition to the broad form perils listed in HO-A coverage, the open perils coverage for dwellings in an HO-B policy will include: Water damage from sudden and accidental discharges, or continuous or repeated leakage of water Back-up of sewage or drainage Damage from the freezing of plumbing or heating systems Damage to foundation caused by water leakage Falling objects including trees Weight of snow, ice, and sleet Glass breakage Damage by animals excluding insects and vermin While HO-B policies provide open-perils coverage to dwellings, there are exclusions to this coverage. The most common exclusions include: Losses related to power surges Normal wear and tear, including rust and mold Earthquakes and landslides Flooding War and nuclear disasters Government action or intervention Remember, adjusters must always check each policy for the full list of exclusions!