Explanation of Coverage for HO3 Policy
Dwelling — Calculated amount of coverage needed to replace building in case of total loss.
Other Structures – Detached structures from the main building. (Fence, Tool Shed, Carport)
Personal property — Personal property is all personal belongings inside the property – (Furniture, Clothing, Appliances, Etc.)
Loss of Use — Temporary living expense while your property is being rebuilt. (Hotel Cost)
Personal Liability — Protection for the insured against any Personal Liability /coverage for defense in Case of Law Suit.
Medical Payments — Coverage for any slip and fall injuries or any other injuries occurring on the property. The medical is per person and any amount above the basic medical is covered by the Personal Liability / Landlords Liability.
Ordinance or Law Coverage– (A) Demolition Cost – Pays for the cost of demolition of the undamaged portions of the building necessitated by the enforcement of building, zoning or land use ordinance or law. (B) Increased Cost of Construction – Pays for any increased expenses incurred to replace the building with one conforming to building laws or ordinances, or to repair the damaged building so that it meets the specifications of current building laws or ordinances.
Debris Removal – This pays for the expenses to remove debris from covered property caused by a covered loss. This does not include “pollutants” and must occur during the policy period and reported within 180 days of the occurrence.
Deductible – The deductible is the amount the client agrees to pay in the event of an insurance claim. Any amount over the deductible is covered by the policy.