Understanding Homeowner’s Insurance – HO3

At Longevity Brokers, we provide a wide assortment of insurance products to the Denver area. One of those products is homeowner’s insurance. While it’s extremely important to have homeowner’s insurance, very few customers fully understand their policies and why they need one. A misunderstanding with your homeowner’s policy could lead to home damages that you have to pay for yourself.

It’s important to fully understand your homeowner’s insurance to ensure that you have the coverage you need. There are several kinds of homeowner’s insurance policies, finding the right one for you is important. In this article we will detail an HO3 policy and it’s advantages.

HO3 Homeowner’s Insurance Policy

So, what sets the HO3 policy apart from all of the others? The amount of things it covers makes it a popular decision among both new homeowners and experienced ones.Hand hold house against green fieldBoth HO1 and HO2 have fewer perils coverage than HO3. For families that want more coverage than the two smaller plans, HO3 could be a perfect choice. HO3 policies are open perils policy, which means that any damage to your home will be covered unless it’s specifically on the exclusion lists. With the HO3 policy, you have coverage from 16 of the basic perils. This includes things like,

  • Fire
  • Lightning
  • Explosions
  • Smoke
  • Vandalism or theft
  • Volcanoes
  • Damage from vehicles and aircraft
  • Damage from falling objects
  • Damage from the weight of snow and ice
  • Damage from overflowing or freezing pipes
  • Damage from wiring or electric appliances
  • Plus several others

What isn’t covered

While HO3 policies cover a lot of disasters, there are a few common perils that aren’t covered that you would have to purchase additional coverage for or pay for out-of-pocket. Just like with other homeowner’s insurance policies, HO3s don’t cover either earthquakes or flooding. Many customers think that their insurance policy includes flooding, but this is one of the biggest mistakes that you can make, and it could become costly.

If you live in an area that is prone to flooding or earthquakes, it’s important to understand that your insurance policy won’t pay for any damages from the natural disasters. You’ll have to buy additional insurance coverage for flooding and earthquakes. Luckily, these extra coverages are easy to add-on.

What impacts your homeowner’s insurance?

Several factors go into determining your monthly insurance premiums. One of the obvious factors is the size and value of your home. The more your home is worth, the more the monthly premiums are going to be, but that isn’t the only thing that affects your rates.

The age and location of your house also have a significant impact on your monthly premiums. The older your house is, the more you are going to pay every month. This is because older homes tend to have more problems, either with electrical, plumbing, or foundation.

Aside from the age of the home, where it’s located can cause your premiums to skyrocket. Is your house in an area that is prone to earthquakes? Maybe your neighborhood has a high crime rate? There are a lot of location factors that can either help or hurt your monthly rates.

Getting lower insurance premiums

If you’re looking to get the lowest monthly premiums on your homeowner’s insurance policy, there are a few things you can do. One of the best things to do for your home and your policy is to beef up your security system. Having a quality security system that is linked to a company that can contact police for you. It can save you hundreds, or even thousands of dollars in premiums every year. Similarly, having smoke detectors, dead bolts, and a sprinkler system could save you even more.

Another easy way to save on your homeowner’s insurance policy is to have all of your insurance plans at one company. Most companies offer multi-policy discounts to customers that have their life, auto, and home insurance at the same company. If you’re looking to save money by bundling, Longevity Brokers is happy to provide several insurance products at an affordable price to the Denver area.

If you’ve been with the same company for several years, most insurers will give you a discount, especially for customers that have been with the same company for a decade or more. Call you insurance agent and ask if you can receive a bundle discount or a long-time customer discount.

A lot of customers don’t realize that the more claims you make on your policy, the higher your monthly rates are going to be. If you have a small amount of damage that you can pay out-of-pocket, consider doing that instead of making

a claim. Typically paying for the smaller damages will save you hundreds of dollars every year in monthly premiums.

Another easy way to lower your insurance charges is to start paying your fees in full every year. Most companies automatically set you up on a monthly billing cycle, but paying your whole premium charges for the year can normally save you some money, plus you don’t have to worry about missing any payments.

HO3 Homeowner’s Insurance

Homeowner’s insurance is just one of the many services that we offer here at Longevity Brokers. We are proud to continue serving the Denver area with affordable and quality insurance plans to give you and your family the peace of mind they deserve.

At Longevity Broker’s, we want to ensure that our customers make an informed and smart decision when it comes to their insurance needs. HO3 insurance policies provide excellent coverage, and if you think one of these plans would work for you, contact a Longevity agent today at (720)209-4598 to receive a quote, or you can use our contact form to have an agent call you.


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