What is an HO-3 insurance policy?

Home insurance comes with a lot of weird stuff. There’s a lot of letters and numbers and terms and all that. It probably feels like a lot of mumbo jumbo. And there are different kinds of policies…which is annoying. But fear not! We’re going to look at a super common type of home insurance policy and explain what it is and does: the HO-3 policy.

How does the HO-3 policy work?

So, there are different pieces to the HO-3 policy and they work a little bit differently.

There’s the dwelling part of the policy, which protects your house. And that is probably covered on an open perils basis. That means that pretty much any loss EXCEPT those specifically excluded in the policy is likely covered. (For example, flooding is typically excluded from home insurance policies. So, unless you have flood insurance, you’re out of luck if a monster rainstorm or something causes water to build up on the ground and it floods your house.) But basically any worst-case-scenarios that aren’t on that exclusion list are fair game.

Then there’s the part of the policy that protects your belongings. This is on a named perils basis, which means that anything that is not specifically listed as a covered loss will not be covered. HO-3 policies usually have 16 named perils, including things like fire, theft, vandalism, smoke, windstorms, and hail. (Of course, we can’t stress the importance of reading through your policy. Seriously. Read it. It might not be fascinating, but it’s important. Read your home insurance policy. Just do it. All the cool kids do.)

So, yeah, that’s the HO-3 policy! It’s your basic home insurance – it’s the super common policy. Anyways, if you need home insurance quotes, hop into our LiveChat and message with one of our agents! We can help you get the insurance you need.