HOME INSURANCE: WHAT IS AN HO-3 POLICY?

| January 7, 2019

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Home insurance might seem like a pretty complicated thing. And it kind of is. There are a lot of fancy terms you have to know; it’s almost like speaking a different language. You might be wondering how your insurance policy works. You know that it’s called an HO-3 policy, but what exactly is that? We’re going to answer several important questions about HO-3 policies to help you understand how that very important (and very wordy) document works. What is an HO-3 policy? An HO-3 policy is basically a type of home insurance policy – the most common one in the United States, actually. It’s a combination of open perils coverage and named perils coverage. Your house and other structures would most likely be covered on an open perils basis while your personal property (the contents of your home) would most likely be covered on a named perils basis. What does that mean? We’ll explain. Open perils coverage: Open perils coverage means that you have coverage for pretty much any sort of loss or damage EXCEPT for the listed exclusions. (Typical exclusions include flooding, earth movement, sewer backup, and so on.) The policy will list the types of losses that are not covered, and if the loss you’re facing isn’t listed as one of those exclusions, you should be good to go.

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Liberty National Life Insurance Company

Since 1900, Liberty National Life Insurance Company has offered affordable life and supplemental health insurance to middle-income Americans through in-home and workplace sales.

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