Originally Posted by InsuranceRus
I am a new agent and I am confused about the differences between an H05 and an H03 and if the H05 is worth the extra money. All replies will be greatly appreciated.
Like all insurance, we'll let you know after the claim is filed. An HO5 essentially covers the personal property the exact same way it covers the home structure itself. There is coverage for anything that could possibly happen....except for what is excluded in the policy.
In an H03 the personal property is covered for only 16 perils (which are listed in thepolicy). If anything else happens to the property there is no coverage.
I'd haphazard a guess that 95% (probably more or maybe less) of the claims that happen to personal property happen because one of the 16 perils listed in an HO3
That being said we generally write HO3s. My house is insured with an HO3.
With an HO3 the insured has to prove that the damage to his or her personal property was caused by one of the 16 perils. In an HO5 the personal property is covered unless the company can prove it was damaged by one of the exclusions.