The post HO8 Homeowners Insurance Policy by Philip Loyd, Licensed Insurance Agent appeared first on Benzinga. Visit Benzinga to get more great content like this.
If you’ve got an older home and you’re looking for homeowners insurance, you might find it difficult to get a standard policy. What you need is an HO8 homeowners insurance policy. Different from the standard HO3 or HO5 homeowners policies, an HO8 is designed specifically for older homes.
If your home is 40 years or older, is an historic landmark or made of hard-to-find materials, then an HO8 homeowners policy is for you. Why an HO8? Because generally speaking, if something happens to your historic home, it will cost more to repair than your home’s current market value. An HO8 policy covers circumstances where replacement costs can prove prohibitive.
Older homes require special and constant care. Sometimes materials are hard to find and can be expensive. Older homes are often not up to code and require a specific type of insurance.
Key Points
- HO8 insurance is coverage for older and historic homes where the homeowner doesn’t qualify for standard insurance.
- HO8 policies cover just the 10 basic perils, unlike HO2, HO3 and HO5 policies that cover 16 perils.
- Homes that fit the HO8 insurance profile do so not just because of age but because their actual cash or resale value is below the cost of replacement.
Table of Contents [Hide]
- What Is an HO8 Policy Form?
- When Are HO8 Policies Typically Used?
- What Do HO8 Policies Cover?
- What Perils are Covered Under a HO8 Policy?
- Replacement Cost Coverage and HO8 Policies
- How to Compare and Get an HO8 Insurance Policy
- Compare Home Insurance
- HO8 Homeowners Insurance Policies for Older Homes
- Frequently Asked Questions
What Is an HO8 Policy Form?
An HO8 homeowners insurance policy, also known as modified coverage form, is homeowners insurance designed specifically for older homes, like a historic landmark. Similar to HO2, HO3 and HO5 insurance, HO8 is a named-perils policy. Perils refers to the type of action required to force an action.
With a named-perils policy, it’s the insurer, not the policyholder, who specifies the perils in the coverage. Unlike HO2 and HO3 homeowners insurance that covers 16 basic perils, HO8 policies cover loss caused by just 10 basic perils. Not only does an HO8 policy cover fewer perils, it could also fall short if disaster strikes your home. In addition to coverage for the dwelling itself, the HO8 does cover loss of personal property and liabilities, although not as extensively as an HO3 or HO5 policy.
When Are HO8 Policies Typically Used?
It’s true that HO8 policies are used when it comes to insuring older homes, but it’s not just the age of the home that’s the determining factor. HO8 insurance is modified coverage, used most often when the repair or replacement value is higher than the actual value of the home. It just so happens that older and historic homes fall into this category.
Besides being upside down when it comes to the replacement/actual cash value of the home, older homes often are not up to code. Because of this, they sometimes don’t even qualify for standard insurance coverage. In such cases, an HO8 policy is required.
What Do HO8 Policies Cover?
HO8 insurance policies cover older and historic homes where the replacement value may be higher than the actual value of the home, or where they may not be up to code. Older homes are often not updated and thus not up to modern codes. Because of this, they don’t qualify for standard HO3 or HO5 insurance.
An HO8 insurance policy covers the replacement value for your older or historic home. Because the manner in which the house was built — and the materials that were used — may not be attainable at a reasonable price, HO8 policies are based on actual cash value and not replacement value. It’s not reasonable to assume that exact replacement for older materials will be affordable or even available.
HO8 policies cover the 10 basic perils like wind, fire and theft. They pay actual cash value for damages to your dwelling as well as your personal belongings, liability and loss of use. Specific coverages include:
- Dwelling and other structures: HO8 policies pay not only for your main dwelling but for other structures on your property like garages, sheds and fences.
- Personal property: Personal possessions covered by an HO8 policy include electronics, furniture and clothing. While jewelry is covered, there are limits to the reimbursement value.
- Liability coverage: Just like with auto liability, an HO8 policy comes with protection for the homeowner if a guest should hurt themselves on the property. Liability coverage includes legal fees for the homeowner and medical costs for the injured party.
- Loss of use: Additional living expenses are covered in case the homeowner must live somewhere else during the period of restoration to the home.
What Do HO8 Policies not Cover?
HO8 policies only cover the 10 basic perils. Other items not covered by an HO8 policy include:
- Damage by earthquake
- Flood damage
- Types of water damage, including flooding
- Intentional loss
- War
- Neglect or maintenance issues
- Wear and tear over time
- Power failure
- Pest infestations or mold
While these items are not covered in an HO8 policy, you can add additional coverage.
What Perils are Covered Under a HO8 Policy?
HO8 insurance is a named-peril policy, meaning it only covers what is explicitly listed in the policy. Unlike standard HO2, HO3 and HO5 insurance policies that cover 16 perils, HO8 policies cover just the basic 10. These perils include:
- Fire or lightning
- Windstorm or hail
- Explosion
- Riot or civil commotion
- Damage caused by aircraft
- Damage caused by vehicles
- Smoke
- Vandalism
- Theft
- Volcanic eruption
In this respect, an HO8 policy is much more like an HO1 than a standard HO3 or HO5: just the basics. HO8 policies do not cover aspects like HVAC, electrical, plumbing and roof because they may very well be out of date and not up to modern codes.
What Perils HO8 Policies Do not Cover
Some of the perils covered by an HO3 or HO5 policy but not covered by an HO8, include:
- Falling objects
- Weight of ice and snow
- Accidental water overflow
- Sudden or accidental tearing
- Freezing
- Accidental damage due to electrical current
Other HO8 exclusions often include loss due to mold, government actions and general wear and tear, although these can be covered by adding additional policies.
Replacement Cost Coverage and HO8 Policies
The entire reason for HO8 insurance is to replace damaged dwellings and personal belongings. Because HO8 policies specifically cover older homes, however, it’s not reasonable to assume that these older parts and materials can be replaced with the same exact parts at an affordable rate — if at all.
Replacement cost means restoring damaged property to its full value before the event, but if you’ve got a home built before the Civil War — or even the American Revolution — that’s just not going to be possible. Therefore, actual replacement cost for an HO8 home can only be addressed using actual cash value and modern-day parts that can at best be used to make the property as good as possible.
How to Compare and Get an HO8 Insurance Policy
When do you need an HO8 insurance policy? If you own a home that’s more than 40 years old, you may not qualify for standard HO3 or HO5 insurance. If your home is historic or even older than 40 years old, you’re going to need an HO8 policy. There are exceptions to the rule, however.
If you upgrade the house and bring the electrical wiring, plumbing, HVAC systems and roofing up to today’s code, you might be able to get around an HO8. You’d also have to show that materials needed for rebuilding will not be cost-prohibitive.
Compare Home Insurance
Still looking for an HO8 homeowners insurance policy? Come compare rates from these great companies and find just the right policy for you.
Lemonade home insurance provides a top-rated homeowners insurance experience that’s easy and hassle free. Award-winning customer service and digital, super-fast everything from just $25 a month.
Lemonade uses technology to simplify the home insurance claims and sign up process. You can buy a policy in just a few minutes by answering a few simple questions, and some claims can be paid instantly using its innovative AI technology.
The app has high user ratings and keeps you connected with your policy. Lemonade may also donate a portion of your premiums to a charity of your choice each year through its Giveback program.
- Those looking for an ultramodern home insurance experience
- Those looking to switch from other homeowners insurance coverage
- Tech-loving homeowners who want fast, efficient home coverage
- Get coverage in as little as 90 seconds
- Most claims paid in less than 3 minutes
- Leftover premiums support charities you care about
- Buried utilities and equipment failure endorsements available
- Not yet available in all states
Policygenius is an insurance marketplace that helps you compare policy quotes from competing insurance companies. Policygenius’s goal is to make it easier to compare insurance quotes from multiple providers to help you find the best option. The Policygenius homeowner’s insurance quote tool is exceptionally easy-to-use, following a simple question and answer format. If you need assistance, Policygenius offers enhanced access to its customer service team, where you can get advice from a licensed insurance professional. Though you cannot fully claim all of your quotes before scheduling a call with a representative, Policygenius may provide you with a low-pressure way to begin exploring your insurance options.
- Homeowners comparing insurance policies
- Customer service staffed by licensed insurance agents
- Quick quote tool available for multiple insurance types
- Automatically receive estimates for bundled auto-home insurance
- Cannot view all quotes before scheduling a call with a representative
- Does not actually sell the insurance policies it quotes
The Hartford is one of the most trusted providers of various types of insurance, including property, casualty and business insurance. Homeowners and rental property owners alike will find solid coverage backed by strong financial ratings.
- Excellent claims process
- Financially strong
- Ranked No. 1 by JD Power and Associates for claims paying
- Slower than average quote time
Allstate is one of the best-known insurance companies in the business and for good reason. It offers a range of coverage options so you can tailor your coverage to your needs. You can apply for a policy through a local agent or online. Even if you buy a policy online, you can still get assistance from a local agent, which can be helpful when it’s time to file a claim.
Allstate’s claims process is clear and you can track it online so you know exactly what’s going on. It also has a mobile app that you can use to pull up ID cards, take photos for a claim and pay your bills. Allstate is a good choice for those with multiple policies and who like personal service.
- Home owners with multiple policies
- Home owners without a recent claim
- Ease of online service or through an agent
- Clear claims process
- Useful mobile app
- Average customer satisfaction for claims
- Optional coverage like yard and garden not available in every state
HO8 Homeowners Insurance Policies for Older Homes
If you’ve got an older or historic home, you’re going to need HO8 homeowners insurance. Your home doesn’t have to be from the 18th or 19th century to qualify, just 40 years or older. HO8 insurance policies are tailor-made for just such homes.
Maybe your older home is made of materials that are not readily available today or old-world craftsmanship that would make rebuilding cost-prohibitive under a standard insurance policy. If so, an HO8 insurance policy guarantees that your older or historic home can be rebuilt, if not exactly like before, then as best as possible using modern materials.
For more great information on homeowners insurance, check out these informative articles on home insurance from Benzinga.
Frequently Asked Questions
What kind of insurance is an HO8 policy?
HO8 insurance policies are modified versions for homeowners who are otherwise unable to obtain a standard HO3 or HO3 policy. They cover homes starting at 40 years and older and can include structures that either have not been updated for code or are constructed with hard-to-find, expensive materials.
Do HO8 policies include replacement costs?
Because HO8 homes are older and may have been constructed in such a manner and with such materials that cannot be replaced using the actual cash value model, replacement value isn’t a viable option. Replacements are made instead with cheaper and more modern parts.
Why are some items like HVAC, electrical, plumbing and roofs not covered in an HO8 policy?
The reason items like these are not covered in an HO8 insurance policy is because the house is older and there’s a good chance they have not been updated. Electrical wiring gone bad that may burn down the house or pipes that could burst and flood the house may not be up to today’s code and thus cannot be insured.
The post HO8 Homeowners Insurance Policy by Philip Loyd, Licensed Insurance Agent appeared first on Benzinga. Visit Benzinga to get more great content like this.
Source: https://www.benzinga.com/money/ho8-homeowners-insurance-policy/
- '
- "
- About
- access
- Action
- actions
- Additional
- advice
- AI
- All
- Although
- American
- app
- around
- articles
- auto
- average
- Basics
- being
- BEST
- Bills
- border
- business
- buy
- call
- Can Get
- Cards
- care
- cases
- Cash
- caused
- Charity
- claims
- Clothing
- code
- Companies
- content
- contents
- Costs
- could
- Current
- Customer satisfaction
- Customer Service
- determining
- different
- digital
- disaster
- Display
- Doesn’t
- Electronics
- Endorsements
- equipment
- estimates
- Event
- expenses
- experience
- Failure
- family
- FAQ
- FAST
- Fees
- financial
- Fire
- First
- fit
- form
- format
- Free
- full
- General
- going
- good
- Government
- great
- Guest
- help
- helps
- High
- Home
- House
- HTTPS
- ICE
- image
- Including
- information
- insurance
- IT
- lead
- Legal
- lemonade
- LG
- liability
- Licensed
- Listed
- local
- looking
- Market
- marketplace
- materials
- medical
- medium
- Mobile
- Mobile app
- model
- Navigation
- Offers
- online
- Option
- Options
- Other
- otherwise
- owners
- partner
- Pay
- personal
- policies
- policy
- power
- price
- process
- Product
- Products
- Profile
- Program
- property
- protection
- provide
- provides
- question
- range
- Rates
- ratings
- review
- satisfaction
- sell
- Short
- similar
- Simple
- So
- something
- specifically
- Sponsored
- started
- Strikes
- support
- Switch
- Systems
- Technology
- The Basics
- theft
- Through
- time
- track
- value
- View
- war
- Water
- What
- What is
- WHO
- wind
- without
- year
- years
