In this blog, we discuss the difference between HO2 and HO3 homeowners policies and the things you need to keep in mind when purchasing one of these policies. Keep reading to learn more!
What Is an HO2 Homeowners Policy?
HO2 homeowners policies (also known in Texas as HO-A+ policies) offer protection on a named perils basis for both your home and its contents.
Now, let’s take a minute to define what “named perils” means.
In the insurance industry, a “named perils policy” means an insurance policy that offers protection only against the accidents listed (that is, “named”) in the policy.
The perils named in an HO2 homeowners insurance policy may vary depending on the carrier, but some of the most common include:
- Fire
- Lighting
- Smoke
- Windstorm
- Hurricane
- Hail
- Explosion
- Aircraft and vandalism
- Riots
- Theft
- Premises liability
What Is an HO3 Homeowners Policy?
An HO3 policy (also known as HO-B in Texas) offers named perils protection for the contents of your house. This is something that HO3 and HO2 policies have in common. The key difference is that H03 policies offer all-risk protection for your home.
In other words, with an H03 policy, your home is protected against all perils, unless specifically excluded in the wording of your policy.
The perils excluded from your coverage may vary. Some common exclusions are:
- Earthquake
- Flood
- Wear and tear
- Mold
- Fungus and rot
- Mice
- Insects and other pests
- Continuous and repeated seepage of water
What Is the Difference Between HO2 and HO3 Policies?
To sum it up, the difference between HO2 and HO3 homeowners policy is the type of protection they offer:
- H02 (HO-A+): Protects both your home and its contents on a named-perils basis.
- HO3 (HO-B): Protects the contents of your home on a named-perils basis and your home on an all-risk basis.
As you can see, the difference between these two types of policies is quite straightforward. However, it’s always a good idea to talk with an insurance professional to make sure you make the right insurance decision.
To learn more about homeowners insurance and get answers to all your questions, contact the experts at BZ Bee Insurance Services. We’ll be glad to offer assistance and help you build a policy that meets your needs.
Need Homeowners Insurance in Houston, Texas? Contact BZ Bee!
If what you need is dependable homeowners insurance at affordable rates, look no further than BZ Bee Insurance.
We are located in Houston, Texas, and serve clients all over the Lone Star state. To get a free quote, just contact us by email (ayalamariaeugenia@yahoo.com) or telephone (832-729-8114), or fill out the contact form on this website.
