Home Insurance HOB

by Cole Humphreys in Homeowners Insurance at August 12, 2015

When searching for Home Insurance, understanding the differences in insurance policies can make a major difference in your success. The HOB is a ome Insurance Policy and is one of the most common homeowners insurance policies in the US. It provides a plethora of coverage for your home and even better coverage for your personal belongings. The HOB Homeowners Insurance Policy is considered in many aspects a hybrid policy. The HO-B insurance policy is a hybrid of an open perils coverage policy and a named perils coverage policy. When purchasing the HOB, your home is covered on an open-perils basis and your contents are covered on a named-perils basis. An open perils policy does not list the perils your home insurance covers. Rather, the policy names the perils your home insurance does not cover. If the occurrence to your home is not caused by something on the exclusion list, then you have coverage. A named perils policy specifically lists the perils that your personal property is covered for. If something happens not on the list to your personal belongings then there is a big chance that you are not covered.
FYI: Peril – A peril is an event or disaster that causes a loss or damage to your home or property. A few of the most common perils are fire, theft, wind, and hail.

Common Exclusions for Your Home
The perils that are excluded on your home insurance policy include:
A. Earth Movement (can be endorsed on)
B. Ordinance or Law (coverage may be provided)
C. Water Damage (Sudden & Accidental Water Damage is automatically included; others can be endorsed)
D. War
E. Neglect
F. Power Failure
G. Nuclear Hazard
H. Intentional Loss
I. Government Action
J. Collapse (coverage may be provided in your policy)
K. Theft to a Dwelling Under Construction(builders risk)
L. Vandalism or Malicious Mischief (60 day vacancy clause)
M. Mold, Fungus, or Wet Rot (coverage may be provided)
N. Wear & Tear, Deterioration
O. Mechanical Breakdown
P. Smog, Rust & Corrosion
Q. Smoke from Agricultural Smudging & Industrial Operations
R. Discharge, Dispersal, Seepage of Pollutants
S. Settling, Shrinking, Bulging, or Expanding
T. Birds, Vermin, Rodents, Insects
U. Animals Owned by Insured
Perils Insured Against for Your Belongings
The 16 perils that your belongings are protected from are:
A. Fire or Lightning
B. Windstorm or Hail
C. Explosion
D. Riot or Civil Commotion
E. Aircraft
F. Vehicles
G. Smoke
H. Vandalism or Malicious Mischief
I. Theft
J. Volcanic Eruption
K. Falling Objects
L. Weight of Ice, Snow, or Sleet
M. Accidental Discharge or Overflow of Water or Stream
N. Sudden & Accidental Tearing Apart, Cracking, Burning, or Bulging
O. Freezing
P. Sudden & Accidental Damage from Artificially Generated Electric Current
There is coverage that is commonly overlooked in the HOB. Although the HOB home policy is the most common throughout the United States, it isn’t the best possible policy money can buy. There are two reasons for this:
A. Water Damage – the policy will cover your home for water damages, but it may not cover damage to your home caused from slow-leaks. The reason we say “may” is because there are a few companies that offer all home insurance water protections with the HOB policy, including slow leaks.
B. Open Perils on Contents – this policy does cover your home on an open perils basis, but only covers your contents for the 16 perils listed above. There are other policy forms that cover your home and belongings for open-perils.

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