HO3 policy in home owners insurance is the basic peril policy and is the most common yet most popular type of insurance. With this policy in place your house will be protected from every danger possible unless it is specifically excluded from the policy. A standard HO 3 policy covers perils that cause damage to the dwelling, other structure of the house and also loss of use. Your personal property is covered against the 16 named perils mentioned in HO 2 policy.
The exclusions in HO 3 policy include:
- Movements of the earth like earthquake, tremors, landslide, mudflow etc.
- Ordinance or law.
- Damage from water, flood excluded.
- War
- Any nuclear hazard
- Action taken by the government
- Act of negligence
- Intentional loss
- Power failure
- Vandalism
- Molds, fungus and wet rot
- Deterioration from wear and tear
- Shrinking or expanding
- Birds, rodents, vermin and other insects
- Any mechanical breakdown
- Animals owned by the policyholder
- Dampness of temperature and extreme temperature. This may not be excluded if loss of property is directly caused by rain, snow or hail.
- Collision
- Destruction or confiscation by a Government body
- Breakage of eyewear, porcelains and other similar fragile objects are excluded unless the damage is caused by:
- Fire
- Explosion
- Riot
- Collapse
- Vandalism
- Smoke
- Theft
- Sudden accidental tearing, burning or bulging
Blog Category