HO3 vs HO6 Home Insurance Policy: What’s the Difference?
Homeowners have to buy their home insurance policies. For ease of understanding, let’s get some jargon out of the way before moving on: HO3 and HO6 are two different types of policy categories that insurers offer. And you might have guessed from the fact you’re reading this blog there’s a very slight difference between the two. This difference is crucial in helping homeowners understand which option to choose if they want to save money while enjoying adequate coverage. If you reside in a condo or apartment and have HO6 insurance, you might wonder what is different between HO3 and HO6.
Personal Property
HO3 and HO6 policies cover personal property in your home, including furniture, clothing, electronics, and appliances. However, there are some differences between their policies:
HO3 policyholders can choose from two types of coverage: Broad Form or Special Form. The broad form covers all your personal property with no deductibles or coinsurance requirements. The special form covers $10,000 worth of property without any deductibles or coinsurance requirements. However, the rest must be paid for by the policyholder out-of-pocket.
In contrast, Florida condo HO-6 coverage policyholders must purchase a deductible waiver through the insurance policy in Florida to avoid paying out-of-pocket for damages under $500. If they don’t purchase this waiver and their home is damaged by a covered peril (fire or windstorm), they will have to pay.
Medical Payments
The medical payments coverage in an HO3 policy provides up to $2,500 for medical treatment after an accident on your property. It also covers any expenses incurred while traveling away from home if you have an accident to or from work, school, or a place of worship. In contrast, the medical payments coverage in HO-6 insurance in Florida is unlimited and covers any medical expenses incurred because of injuries sustained on your property and off-premises accidents.
Additional Living Expenses
Additional living expenses (ALE) are a component of both the HO3 and the HO-6 insurance in Florida. It covers temporary housing expenses if you are forced to relocate after a covered loss. However, these two policies differ from one another in several ways. For example, with an HO3 policy, you do not need to stay in a hotel or other temporary dwelling for more than 30 days before moving into your replacement home. In contrast, with HO6 insurance, you can stay in a hotel or other temporary dwelling for up to 60 days before moving into your replacement home.
Liability Coverage
Liability coverage is one of the most important component of an insurance policy. It protects you from financial liability in case someone gets hurt or their property is damaged on your property. You can choose between two options for this coverage: HO3 and Florida condo HO-6 coverage.
HO3 is better than HO6 because it covers more people (people injured on your property) and more injuries (such as emotional distress). It also covers more damages to people or property, including those that happen off-premises (like if someone slips in the shower at your home and breaks their ankle).
HO3 vs HO6 home insurance policies are a common choice among homeowners. Both policies will cover your home and its contents against covered events, but the coverage limits differ substantially under each policy. Also, there are other significant differences in terms of deductibles, renewal requirements, and more. Considering an HO3 vs HO6 home insurance policy, you should weigh these differences carefully to determine which policy best fits your needs, and that’s where ZK & Associates comes in. Contact ZK & Associates today to know which insurance policy best fits you.
