Home Insurance Quotes
Ho5 insurance savings  Home
Best Rates NowSM
Although more expensive, the cost of a Ho5 policy alone does not explain why the Ho5 policy is often disregarded in favor of the Ho3 product, referred to as 'Special' form coverage. Let's examine why.
Ho3 vs Ho5
What's the difference when you compare Ho3 vs Ho5 and what are the characteristics of a Ho5 insurance policy in general?
As an owner occupied homeowners policy, the product also denoted as Ho-5 is a multi-line insurance product. This means that form Ho-5 insurance provides the policyholder with protection in a number of areas; coverage that you purchase collectively as a package for a single premium or quote.
Areas Of Coverage:
B. Other Structures
C. Personal Property (Contents)
D. Loss of Use (Additional Living Expense)
E. Medical (Guests)
F. Personal Liability
The above areas of coverage are consistent across owner occupied policy forms. What differs is the scope of coverage (in other words what is covered by default as standard).
An important characteristic of home insurance is that homeowners invariably need to evaluate or consider additional coverage over and above what the product offers by default. This includes consideration as to:
- What perils, occurrences or cause of loss events are covered for home and contents.
- What additional coverage protection may be required.
- What settlement approach will apply in the event of a claim on home or contents coverage.
Ho5 Offers All Risks Open Perils for Contents
Premier Ho5 quotes differ from Special form cover because Ho5 offers All Risk or Open Perils protection for your contents or personal property as well as on the home (dwelling and other structures) itself.
With the more popular special coverage 3 products, your personal property is covered against a list of Named Perils (with all risk open perils cover applicable only to the dwelling and structures).
Ho5 might seem superior, extending all risks protection for your belongings; but Ho5 protection in practicable terms adds little beyond what special coverage 3 quotes already cover.
To understand this, you need to understand:
- What All risks Open Perils actually means.
- What perils, occurrences or loss causes are not actually insured against by default - even with all risks Ho5 coverage.
'All Risks' is best regarded as Named Exclusions. Coverage is provided for all risks or open perils - except those excluded in the policy.
In reality, the list of excluded events or occurrences is not insignificant. Practicably speaking, a peril that might befall your personal property, that is not already covered by a special form named perils product is likely excluded in Ho5 anyway - by default.
- For what is covered and named exclusions (as all risks - except) see our article Ho3
The major reason why Ho5 quotes are eclipsed by the number of special form quotes is that Ho5 policies add little of practical use or benefit for an additional cost that is difficult to justify.
Ho5 Offers Replacement Cost Settlement for Contents
Offering all risks cover for your contents is not the only way Ho5 differs. The settlement approach for personal property claims reflects the superior Replacement Cost method. The default approach under a special form product is to provide for contents settlement on an Actual Cash Value basis. This means the current day, depreciated second-hand or used worth of your belongings. This amount is clearly insufficient to allow you to replace lost items new.
So unquestionably, full replacement cost settlement for contents, standard with Ho5 is superior. But at what cost? Ho5 premium quotes are more expensive than lesser products. The fact is that homeowners can simply add a replacement cost endorsement to a special Ho3 product. This switches the default cash value approach over to the preferred replacement cost approach; invariably achieving the desired result cheaper.
Similarly, a Ho5 homeowners policy may offer some coverage by default that would otherwise require an endorsement to a special form product. Should you desire such coverage, again it may be cheaper to endorse upon what is the lower cost special form.
Regardless of the homeowners form you choose, shopping free quotes is the essential task for every cost conscious homeowner. Ho5 cost is not standard across insurers, rather Ho5 premium quotes are based upon rates that the insurer pre-determines. Ratings take into account the home location and the principal amount of dollar coverage required on the home.
Many things affect the price of quotes, including facts about the home to be insured; it's age, size, construction, roof type and much more. Most facts however serve only as a price quote adjustment upon an existing base rate. These rates can vary significantly among insurers depending on the exact location of the home and policy limit.
Best Ho5 Quotes
Find carriers that may afford you premier Ho5 coverage for less. Collecting quotes from several carriers reveals rating competitiveness as quote prices increasingly differ. Quote discrepancies for the same Ho5 coverage (even special form) can be measured in hundreds of dollars. So Ho5 quote shopping comparison is important, not simply to find the cheapest company insurer, but to find an insurer with a more favorable lower cost rate set for your particular home location and dollar coverage need. It is thus the choice of carrier itself that most influences the price of your quote. You can save by accepting a higher deductible, paying in full and enjoying any discount. Although such premium reduction techniques are effective with all insurers, the rating system ensures that they are rendered inefficient unless you are dealing with a good choice of carrier in the first place. For the best Ho5 quotes, find state carriers here and get free direct quotes today.