Ho3 stands for Home, House, and Homeowners insurance policy. It is also known as a combined coverage policy or packaged policy. Similar to other insurance policies, Ho3 is designed to protect you against financial losses arising from specified risks. However, most people who buy home insurance don’t know that they have an option to get a combined Ho3 policy or even what the acronym stands for. And while it doesn’t cost much more than named peril policies, getting a Ho3 policy comes with several benefits that are not offered by traditional home insurance policies alone. In this AAA Public Adjusters blog post we will discuss 5 reasons why you should get a Ho3 insurance Policy:
Your home AND personal belongings are covered
If you have separate policies for your home and your possessions, each one will have its own coverage limits. However, with a Ho3 policy you can extend the coverage limits of your homeowners policy to cover your personal belongings. This means that you won’t have to worry about exceeding the coverage limits of your homeowners policy and having to pay for damages to your personal items out of your own pocket.
Loss of rental income is covered
With a traditional home insurance policy, you will only be covered for the loss of rental income if your home has been damaged by a covered peril such as a fire or a storm. However, a Ho3 policy covers you for the loss of rental income when a covered loss happens to your home. If your home is temporarily uninhabitable due to a covered peril, you’ll be able to continue collecting the rent from your tenants while you wait for your insurers to issue a claim payment. This is a significant benefit of a Ho3 policy.
You can benefit from a repair or replacement guarantee
Even though damage to your home is covered by your Ho3 policy, the process of filing a claim and waiting for the payment can be quite stressful. With a repair or replacement guarantee, you can get your home repaired or replaced within a specified time frame without having to wait for your insurers to issue a claim payment. This guarantee is offered by most Ho3 providers and applies to covered losses that are reported within the specified time frame. However, it is important to note that this guarantee only covers losses related to damage to the structure of your home.
Ho3 insurance comes with an additional protection
If you buy a traditional home insurance policy, you might expect it to cover losses related to building defects. However, since each policy is different, it is difficult to know for sure which losses are covered until you file a claim. And even if a loss is covered, the amount of the claim payment might not be enough to cover the repair costs. With a Ho3 policy, you can be sure that certain types of building losses will be covered. Some Ho3 providers also offer coverage for certain types of building materials. Contact AAA Public Adjusters if you have questions about an Ho3 policy.
Coverage against all risks losses in building materials
This coverage is offered by Ho3 policies. It protects you against building materials such as drywall, moldings, and paint. However, it is important to know that this coverage is broader than a named peril policy and comes with an additional premium. When purchasing this coverage, you should specify that you want to be covered by this policy. Keep in mind that you will only be covered for losses that are discovered during the policy period.
Exclusion against defects in building workmanship and wear and tear
This policy does not cover defects in building workmanship, such as faulty wiring, plumbing, and other aspects of a building that are not purely materials-related. This exclusion applies to defects that occur during the policy period and can be noticed during a home inspection. Unfortunately, this coverage does not protect you against defects in new building materials as it does not cover the installation of such materials.
Summing up
Getting a Ho3 insurance policy is a good idea, especially if you own a home and have expensive personal belongings. This type of policy covers both your house and your personal belongings, and provides coverage for different types of losses that might occur such as natural disasters or damage to your property.
About AAA Public Adjusters
AAA Public Adjusters, LLC, is a property loss consulting firm headquartered in Philadelphia, PA. Additional offices are located throughout Pennsylvania, New Jersey, Florida, Maryland, Delaware, Virginia, and North Carolina. AAA Public Adjusters have been fighting insurance companies for over 25 years. AAA Public Adjusters , Maximizing Your Claim!
