HO3 insurance 101: What does the HO3 insurance cover?   

The HO3 insurance isn't a splurge; it's essential. That is why it has massive potential for earnings. According to IBIS World, the HO3 insurance market is an $86 billion industry.   

However, many instances have shown that not many people are sufficiently familiar with what their HO3 insurance covers and its limitations. And when something happens, and they file the claim, it is too late. It is imperative to understand the terms and conditions when purchasing a new policy. Even when changing an old policy, one needs to cautious to ensure protection for different losses that might occur on your valuables.  

It is an extensive insurance that provides for almost all of the owner's needs. We will talk about the most common homeowner's insurance form: the HO3 insurance.   

What does an HO3 insurance cover?   

The standard policy provides for these costs in case of any losses:   

• Damage to the house: If any damage occurs due to vandalism, hurricanes, or other disasters, the insurer will compensate your client for repairing or rebuilding their home. Structures like sheds, garages are also a part of the dwelling.   
• Personal Liability: The clause includes any damage caused by your client or family members. The most common example is a dog bite.     

Anyone injured in the homeowner's property also falls on this category.   

• Hotel rental: For the loss of use of the home while works like rebuilding and repairing occur, additional coverage is provided.    

The HO3 policy pays all costs of hotel or apartment rentals during this process. But there are individual daily and total limits on these bills.   

• Contents or interior of the house: The HO3 insurance covers the contents of the house under personal property. A separate section- Coverage C includes all the private property the homeowner owns. HO3 insurance helps cover almost all private property.