how does an hob cover water damage differently than an ho3?

by bcounts » Tue Sep 21, 2010 05:02 pm

how does an hob policy cover water damage differently than an ho3?

Total Comments: 4

Posted: Tue Sep 21, 2010 05:06 pm Post Subject:

What is a "hob"?

Posted: Tue Sep 21, 2010 05:56 pm Post Subject: what is an hob

An HOB is a Broad Form Homeowners policy sold in Texas

Posted: Wed Sep 22, 2010 12:11 am Post Subject:

HOB is equivalent to HO2 (broad form coverage). HO3 is "special form" or "All Risk" coverage. Rather than naming covered losses, the policy lists excluded losses. If it's not excluded, the loss is covered.

So to answer the question, it depends on the exclusions found in the HO3 policy form. What kind of water damage are you asking about? If floodwater, it's most definitely excluded, as it is only covered under a NFIP policy. If you're talking about sewer back up, not even the NFIP policy covers that unless the back up begins off premises. If you're talking about broken pipes not due to freezing, then you're probably talking about a covered loss. But if the break is due to a maintenance issue (old age, corrosion), not a sudden, unexpected bursting of the pipe, then it may not be covered.

You have to read the policy to know what is not going to be covered.

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