Summary of the Article: Homeowners Insurance Coverage

1. What are the 4 major categories of coverage in homeowners insurance?

With a standard homeowners insurance policy, you’ll get four key types of coverage: dwelling, other structures, personal property, and liability.

2. What are 2 things not covered in homeowners insurance?

Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. Poorly made items or hidden defects are generally excluded.

3. What are the 6 coverages that most homeowners policies in Texas include?

The six types of coverage included in most homeowners policies in Texas are dwelling coverage, medical coverage, personal property coverage, coverage for other structures, loss of use coverage, and personal liability add-on. Texas insurance carriers also have a duty to defend.

4. What is the difference between HO5 and HO6?

HO5 policies provide open perils coverage for both a home and personal property. HO6 policies cover everything inside the walls of a condo unit for named perils.

5. What are four things not covered by homeowners insurance?

Standard homeowners insurance policies typically exclude coverage for valuable jewelry, artwork, other collectibles, identity theft protection, or damage caused by an earthquake or a flood.

6. What are the 3 basic levels of coverage that exist for homeowners insurance?

The three coverage options are actual cash value, replacement cost, and guaranteed/extended replacement cost.

7. Which of the following losses would not be covered by a homeowners policy?

Most homeowners policies do not provide coverage for animals, birds, fish, automobiles, and business property. They also do not cover losses or damage caused by flood, surface water, water backing up through sewers or drains, earth movement, nuclear damage, war, etc.

8. Which is better HO3 or HO5?

Both HO3 and HO5 policies cover a house on an open peril basis. However, HO5 policies offer better coverage for personal property, which comes with a higher price.

9. What does HO6 mean in insurance?

HO6 insurance, also known as condo insurance, can cover liability claims, damage to a condo unit and belongings, and additional living expenses in case of a covered incident.

10. What are the common exclusions in a homeowners policy?

Common exclusions in homeowners policies include earth movement like earthquakes, sinkholes, or landslides; water damage such as floods or sewer backups; and damage resulting from other causes specified in the policy.