HO5 Home Insurance Policy
An HO5 home insurance policy is one of the best policies available. It provides comprehensive coverage for your home and your contents..
The HO5 Insurance Policy is an Open Perils Policy
The HO5 insurance policy is an open perils policy. This means the policy does not list the perils your home is only covered for; instead it your home is insured for everything except what is specifically listed as not covered. If your home or contents are damaged by anything that is not on the exclusion list- then you are covered. This policy provides the most comprehensive and extensive coverage offered.
Exclusion List for Your Home & Contents
The only perils that are excluded on your home and personal property are:
- Earth Movement (earthquake coverage can be added)
- Ordinance or Law (some coverage may be provided in your policy)
- Water Damage (Sudden & Accidental Water Damage is automatically included; others can be endorsed onto the policy)
- Power Failure
- Nuclear Hazard
- Intentional Loss
- Government Action
- Collapse (some coverage may be provided in your policy)
- Theft to a Dwelling Under Construction
- Vandalism or Malicious Mischief (only excluded if vacant more than 60 days)
- Mold, Fungus, or Wet Rot (some coverage may be provided in your policy)
- Wear & Tear, Deterioration
- Mechanical Breakdown
- Smog, Rust & Corrosion
- Smoke from Agricultural Smudging & Industrial Operations
- Discharge, Dispersal, Seepage of Pollutants
- Settling, Shrinking, Bulging, or Expanding
- Birds, Vermin, Rodents, Insects
- Animals Owned by Insured
Where This HO5 Insurance Policy May Lack in Coverage
Although the HO5 home insurance policy is one of the best policies available, there are a few areas where the HO5 may lack in coverage. The two largest areas are:
- Water Damage - this policy always comes with Sudden & Accidental water damage, and may come with other important water damage coverage options such as: water backup (water backing up through drains in your home), water damage found in the foundation, and water damage resulting from slow leaks. Most HO5 policies will come with many of these water protection coverage options, but it is not necessarily standard, so be sure to ask your agent if they are included in your policy.
- Flood - despite being one of the best home insurance policies available, this policy still will not cover flood. Flood is rarely included with a standard HO5, and typically can not be endorsed onto the policy. FEMA, a government organization, sells flood policies to those who are interested. Most insurance agents are also licensed flood agents, and can write both a flood and home insurance policy for you.