Types of Home Insurance

Isn't Home Insurance All the Same?

Insurance can be confusing. Most of us know there are different types of coverage, but do you know there are different types of home insurance policies? I know I had no idea there were difference types of home insurance before we got into the insurance business. Home insurance should be home insurance. Why are there different types of policies? 

We can explain that!

Let’s look at the different types of policies.

HOA or Named Perils Policy

This is the most basic of home insurance policies. All coverage on this policy will be Actual Cash Value (ACV) only. This means the value of the damaged property will be paid out at the depreciated amount, based on the item’s age and the condition at the time of the claimed loss. So, for example, if your 5 year old TV is stolen, the Insurance carrier will only pay out what it would cost to buy that 5 year old TV. Most people don’t want to buy a 5 year old TV. HOA policies only cover specific hazards (specifically named perils) which generally include the following:

1. Fire or Lightning 

2. Wind/Hail (unless you are in certain counties where carriers will not cover wind/hail) 

3. Sudden and Accidental smoke damage (from a covered fire) 

4. Explosion 

5. Aircraft and Vehicles (unless caused by the insured or a resident of the home) 

6. Vandalism/Malicious Mischief 

7. Riot or Civil commotion 

8. Theft (on premises) 

These may vary between carriers, but they will be listed specifically on the policy. 

HOA+ or Broad Perils Policy

These policies are HOA policies with additional common perils:
1. Falling Objects, including trees or limbs.
2. Weight of ice and snow
3. Sudden and Accidental water discharge
4. Sudden and Accidental water/steam damage from water heating system

HO3 or Open Perils Policy

This is the most commonly used Home insurance policy in the US. It covers your dwelling (home building) on an open perils basis, meaning it covers all perils unless specifically excluded. Common exclusions include:

1.  War
2. Nuclear
3. Wear, tear, rust, mold
4. Intentional acts
5. Government actions

HO3 policies also include Replacement Cost coverage for your home. Replacement cost for your contents is sometimes included, depending on the carrier.  It can be endorsed onto the policy if the basic HO3 doesn’t include it. So if your 5 year old TV is stolen, if you have Replacement Cost on your contents, the TV will be valued at the cost of a new TV today.

HOB or Texas Open Peril Policy

This is very similar to the HO3 (the National form) but it includes additional water damage protection which must be endorsed onto the HO3. Most carriers will use the HO3 form, but the HOB is great coverage.

Home insurance policies will NOT cover Flood or Earth quake. They are a separate type of policy with different coverage options. If you live on the Gulf coast, chances are Wind/Hail coverage will not be included and you may have to go through the Texas Windstorm Insurance Association (TWIA) for a separate Windstorm policy.

Please speak to your agent about which policy form is best for your circumstances. That is what you have an agent for! If your agent won’t answer your questions, please give Brockman Premier a try!

There are three ways to request a quote for your insurance needs: 

* Visit our website

* Email us

* Call Brockman Premier Insurance at 877-987-8683  

Holiday Hazards- Kids and decorations

HOLIDAY DECORATIONS CAN BE HAZARDOUS TO YOUR KIDS!

We all know kids are attracted to shiny baubles. And Holiday Decorations are full of shiny baubles and other pretty, but dangerous items that can cause serious harm 
to a child.


Let's start with the Christmas Tree. If you have toddlers in the home, try to keep the lights and ornaments up higher. They love to grab at things and the tree poses a tipping- over risk. And they love to put things in their mouths. Smaller ornaments hung low on the tree are a choking hazard for little ones.

Decorations can pose all types of hazards. Hanukkah and Christmas candles need to be kept out of reach. Tablecloths are a temptation for little hands who like to pull on things. Broken glass/plates, falling hot food and candles are a few of the posibilites. Keep greenery out of reach as well. While Poinsettias are not poisonous, Mistletoe berries ARE poisonous.
Those wrapped presents are very pretty, but they are choking hazards. Also it is fun to play in those styrofoam peanuts, but they are also just small enough for little ones to put in their mouth.
If you have children under feet in the kitchen, take extra care when moving hot pans, opening the oven or cooking over burners. Our little ones do not know the dangers, but we do.
Keep those babies safe this Holiday Season!

There are three ways to request a quote for your insurance needs: 

* Visit our website

* Email us

* Call Brockman Premier Insurance at 877-987-8683  

Holiday Hazards- Decorating Safety

DECORATING WITHOUT BURNING Down the HOUSE!

During the Holiday season each year, fires claim the lives of more than 400 Americans, injure 1,650 more, and cause more than $990 million in damage. 

Candle-related fires are one of the most common holiday home hazards, averaging more than 12,000 each year. Candles are a beautiful addition to Holicy decor. But make sure you keep those Advent and Chanukah  candles away from flammable items (like your tree and those wooden Nutcrackers!) Always blow them out when you leave the room. And double check if you are leaving the house. One candle is all it takes.
   


Another indoor fire hazards this time of year is the Christmas Tree. You want to place the tree at least three feet from any heat source, such as the fire place, a radiator or candles. If you have a an artificial tree, make sure the box is labeled or certified by the manufacturer as UL tested to withstand fire. If you have a real tree, remember a moist tree is less likely to catch fire than a dry one. When selecting your tree, check to see if the needles fall off when touched- this indicates a dry tree. To keep it moist, keep water in the tree stand and check it daily.    

One of the biggest fire hazards is the fire place. Everyone loves a roaring fire when it is cold out. But it can cause horrible damage if proper care is not taken. Hang those stockings with care! Make sure your damper is open and cover your fireplace with a screen or grate. Curb that temptation to put the tree next to the fire place. It will make a lovely picture, but the consequences can be deadly. On Christmas morning, grab a garbage bag to throw the wrapping paper in. Tossing it into your fireplace can create enough sparks and embers to start a fire outside the fireplace. 


Decorations help us feel festive during this wonderful time of year. I know it brightens up our home . But let's decorate with safety in mind and keep those we love safe and sound!
   
If you do have a fire, get your family out of the house and call 911. Call you insurance company once everyone is safe and the fire is out..

You can also check out  tips from the experts at This Old House about preventing Holiday fires.

There are three ways to request a quote for your insurance needs: 

* Visit our website

* Email us

* Call Brockman Premier Insurance at 877-987-8683