When choosing Houston homeowner’s insurance coverage that is right for you and your family, it can be confusing, especially here in Texas where companies can use national policy forms or Texas policy forms. While it is your responsibility to ensure that your home is properly insured, Texan Insurance agents will walk you through the different options so you can make the best choices to protect your home and family.
Texas companies use both the national policy forms such as the common HO3 as well as Texas forms HOA, HOA+, and HOB. Let’s compare the common policy forms in Texas (listed in order from least broad coverage to the broadest coverage available):
HOA (Named Perils)
HOA is the most basic type of Texan homeowners insurance. HOA policies offer actual cash value coverage only, meaning settlements for damaged property are depreciated according to the item’s age and condition at the time of loss. The HOA is limited to these 8 specific Named Perils:
- Fire or lightning
- Sudden and Accidental Damage from Smoke
- Windstorm or hail (does not cover wind-driven rain)
- Explosion
- Aircraft and Vehicles (not caused by insured or resident)
- Vandalism or malicious mischief
- Riot or civil commotion
- Theft (restrictions apply if off-premises)
HOA+ (Expanded version of HOA)
The HOA+ Home Policy provides broader coverage than the HOA policy but is still limited to the Named Perils listed in the policy. Loss settlements are typically replacement costs for the dwelling, replacement cost coverage for the contents can also be added. The forms are company-specific, but we have included the common perils listed below:
- Falling objects
- Weight of ice, snow, or sleet
- Sudden & Accidental discharge/overflow of water or steam
- Sudden & Accidental tearing apart, cracking, burning, or bulging of steam or water from water heating system
- Falling trees or limbs.
HO3 (National form Open Peril)
The HO3 is the most common policy form in the US and provides coverage for your home on an Open Perils basis, with Named Peril coverage for your contents. Unlike the Named Peril policy forms, the Open Perils policy forms provide coverage for all sudden and accidental damage except the items specifically excluded or otherwise limited. Notable exclusions are limited water discharge (no seepage or leakage or water back up), flood, and earth movement.
HOB (Texas form Open Peril)
The HOB is similar to the HO3 as it also provides coverage for your home on an Open Perils basis; however, it provides additional water damage protection that an HO3 does not provide. While this policy form has declined in popularity with companies many companies have opted to provide a less broad HO3 form. When available, the HOB form provides excellent value for the coverage being provided.
As you can see, there are many options to consider when choosing protection for your home. Texan Insurance agents will help you consider all the factors and choose the homeowners insurance that makes the most sense for you and your family.
Call Texan Insurance 281-998-2500 today to review your current homeowner’s insurance needs.