Homeowners Insurance

A package policy covering the dwelling, other structures, belongings, loss of use, and personal liability.

Overview

The dominant HO-3 form covers the dwelling for all perils except named exclusions and contents for named perils such as fire, wind, and theft. Flood and earthquake are excluded everywhere, and in hurricane zones separate wind deductibles, often 1 to 5 percent of dwelling value rather than flat dollars, shift risk to owners. Replacement cost contents coverage pays more than actual cash value after depreciation. Insurers price on construction, age, roof condition, claims history, and credit based scores in most states. Lenders require coverage, but the liability and contents protection benefits owners without mortgages too.