Services Homeowners insurance

This first and most basic policy type is called the HO3 (Homeowner Insurance Policy). It protects homeowners from costs incurred from property damage from wind and hail, water and freezing damage, burglary, fire, and lightning strikes. Some HO3 policies cover personal liability and medical costs, but they must be named and funded. The premise is simple: owners pay a monthly premium, and the insurance company covers a pre-designated amount of damage in case the worst-case scenario comes to pass.

Another type of coverage covers condo owners and is called HO6. It specifically covers condominium owners, and everything inside the unit, providing liability coverage in case of fire, smoke damage, inclement weather, theft, vandalism, and plumbing issues. Personal property and theft protection insureds furniture pieces, clothing, electronic devices, and jewelry, while personal liability / medical payments insurance will offset legal expenses in the case of a lawsuit resulting from injuries to others or damaging other’s property.

You can also arrange for loss assessment coverage, which helps you when certain costs are not covered, and additional living expense insurance, should you temporarily need to relocate.

Similarly, HO4, which refers to renter insurance policies, works the same way, except that HO4s are specifically designed for renters. It is also sometimes referred to as tenant’s insurance.

If you own a home or condo and you rent it out, you may want to learn more about rental dwelling insurance policies, which are also called DP3s. They function in many of the same ways that HO3s do, except they cover you against damages that may be a fault of your tenant.

DP1, or rental dwelling property insurance, covers many of the same exceptions listed above, except the biggest difference is that these policies have very distinct exclusions, such as for water damage. These policies are also known as actual cash value policies, and are much more limited in scope than DP3, which tend to provide the most amount of coverage.

Builder’s risk policies apply to unfinished structures and reimburse owners for the cost of repairs and damages or losses of building that come as a result of bad weather, fire, theft, or vandalism to a construction site. This comes in very handy for developers. We previously discussed property liability insurance in our automobile section, so no need to get into much detail here.

If you live in South Florida, you are well aware of the potential damages to structures that may happen during extreme weather. In fact, many areas are divided into flood zones, depending on location and proximity to the east coast and the Atlantic Ocean and Intracoastal Waterway. The Federal Emergency Management Agency estimates that as little as one inch of flooding can cause $25,000 in damages.

Given that metric, flood insurance is a must for home and property owners. It is only a matter of time before the next big one hits, and odds are storm surge will be a factor. And excess flood insurance policy covers you where regular flood insurance does not. It acts as a supplement to the basic flood policy and affords additional reimbursement.