Comprehensive Protection Is Available With HO-5 Homeowners Insurance

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An HO-5 homeowners insurance plan is an open-perils insurance policy that protects against all but excluded perils. The exclusive policy costs more than the popular HO-3 homeowners insurance plans that protect against many cited perils. But the open-perils protection of an HO-5 policy is more exclusive because homes must be newer and meet qualify standards for coverage.

The homeowners policy will protect a home against all risks that are not excluded by name. It insures the structure against losses caused by theft, fire, lightning, explosion, smoke damage and freezing. It also protects against losses caused by vehicles, falling objects, volcanic eruption, windstorm, hail, riot or other civil commotion and vandalism or malicious mischief.

Other applied coverages include losses caused by aircraft, the weight of ice, sleet or snow, sudden and accidental tearing apart, cracking, bulging or burning, a power surge or an accidental overflow or discharge of water from air conditioning, water heaters, plumbing or other internal sources.

When a home qualifies for an HO-5 insurance plan, most insurance experts agree it is the better option. It is especially useful for homes that cost a great deal and contain high-value items, such as antiques, artwork and jewelry. It is best to assess the value of personal belongings and household contents to determine if the policy is the right one.

When the contents and personal belongings cost a great deal and might be rare or otherwise difficult to replace, the additional cost of an HO-5 insurance plan makes it a wise choice for homeowners. Options are available for replacement cost coverage or actual cash value with the actual cash value option being more affordable but possibly leaving some items more at risk. And adjusting the deductible amount can make the HO5 policies cost less.

Another way to make the comprehensive homeowners insurance policies more affordable is to make the deductible higher. Deductibles help insurers by reducing the need to handle claims for small losses while also limiting the potential for lawsuits arising from them. The higher the deductible amount, the more affordable a homeowners insurance plan will be.

An HO-5 form of homeowners insurance will provide many additional protections that must be added through endorsements on HO-3 policies, such as replacement cost coverage. While the policyholder can opt for the lesser coverage provided by actual cash value, the comprehensive insurance provided by the homeowners plan makes it more expensive but well worth the additional cost for many homeowners.

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