The most popular type of household insurance is homeowners insurance. Homeowners insurance covers your home’s structure and contents as well as your possessions. Many policies include a section on personal liability that covers you if a guest falls stairs or is otherwise injured while on your property.

Many companies offer insurance for homeowners with different types and levels of coverage. For example, some policies are specifically designed for condo owners or renters with different coverage requirements than homeowners. To classify homeowner policies, insurance companies use numbers and letters. Common forms include HO3 and HOB, which are adaptations of the HO3 policies.

The HOB Policy

HOB policies are a mix of coverage that covers both “open peril” and “named peril.” As the name suggests, open peril coverage is unlimited. Instead of listing what insurance covers, the policy lists all perils and dangers that are not covered. The insurer will cover any event not included in the exclusions list.

However, named perils are risks that your insurance policy doesn’t cover. A typical HOB policy covers structural damage to your house under an open peril clause, while personal property inside the home is covered on a named peril basis.

Check Out The Structure Exclusions

A HOB policy covers a house for all types of damage. It excludes earth movements, power outages, war, nuclear accidents, and vandalism. Water damage protection is usually included. However, homeowners insurance almost never covers flooding. Flood insurance is required if you live near a flood zone or in an area that is susceptible to flooding. You should also consider earthquake protection if your home is in California or another prone area.

Personal Property Insurance

A HOB policy protects your personal property from 16 perils. These include fire, lightning, wind, hail, smoke, and explosion. It protects you from theft and vandalism.

The amount of coverage

Your house’s value and contents will determine the amount of coverage you require. To get the best coverage, have a contractor/builder come through your house and give you an estimate on what it would cost for you to rebuild. After that, you can take a look at your furniture and other property and calculate how much it would cost to replace them all. A policy that covers 125 percent of these expenses will provide the best coverage. If you need to rebuild after construction costs have increased, the extra padding will protect against inflation.

Look for policies that cover full replacement costs, not just the actual cash value when shopping for insurance. Actual cash value is the price you would receive if you were to sell an item today. This number is usually less than what it would cost to replace the item with a brand new one. An actual cash value policy might leave you short if you need to start again.

Limits on HOB policies

HOB policies typically cover accessories such as lawnmowers, garden tractors, boats, trailers, and similar devices while on the premises. You can also get coverage for credit cards, securities, and precious metals. However, there are usually restrictions on dollar coverage. You should ensure collectibles, art, and jewelry under your insurance policy to recover a greater amount.

Insurance for Homeowners in Charlotte, North Carolina

A HOB homeowners insurance policy is a valuable investment for any homeowner. By having coverage in place, you can protect your home and belongings from unexpected damage or loss. At our Home Insurance Agency in Charlotte, North Carolina, we are committed to helping residents find the right homeowners policy for their needs. We offer a variety of policies from top-rated carriers, so you can rest assured that your family will be protected in the event of an emergency. Contact us today at 704-800-5929 to learn more about our products and get a free quote!