Help with Understanding Home Insurance Coverage

Do you own a home?
Are you considering buying your first home?

Many homeowners think that all home insurance policies are the same. This could not be further from the truth.

Do you know what type of coverage you currently have? You probably should, since your home is mostly likely your biggest asset. If you are serious about obtaining the best available home insurance, call your current Agent and find out if you have a HO3 or HO5.

HO 3 versus HO 5

Both forms of home insurance provide coverage to your Dwelling (your home structure) on an open peril basis. In simple terms, this means that your Dwelling (your home structure) is insured against all causes of loss, that are not specifically excluded in your policy.

The personal property in your home (furniture, clothing, stereo equipment & electronics, etc) is also covered on and HO 3 and HO 5, but the coverage on an HO 3 versus a HO 5 is very different. Your personal property is only covered for specifically named perils on an HO 3. Another big difference between and HO 3 and HO 5, is that personal property is covered on an Actual Cash Value Basis (unless endorsed to provide Replacement Cost Settlement.) We highly recommend always purchasing a policy that provides Replacement Cost Coverage.

McCollum Insurance can offer both forms (HO 3 and HO 5),  but remember, an HO 5 offers the broadest protection. We recommend an HO 5 Policy to all of our clients who are serious about obtaining the best available coverage for their home and personal belongings.

You should expect to see a higher premium on the HO 5 Policy. The additional premium will be money well spent, in the event of a future claim.

For more information on this, or any insurance topic, please call us in our Philadelphia office at 215.508.9000 or our Newtown Square office at 484.420.7800.

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Are you ready to save time, aggravation, and money? The team at McCollum Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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