HOB Insurance Definition (Hybrid Homeowners Policy)

HOB Insurance Definition & HO B policy, Texas – The HOB Home Insurance Policy is one of the most common home insurance policies in the United States. It provides excellent coverage for your home and good coverage for your personal property.  United Home Insurance Paragould, AR offer the HOB.

HOB Homeowners Insurance

When you purchase your first home, you’re likely making the biggest financial decision of your life. On top of having to deal with the closing process and gathering all the money together, making sense of HOB homeowners insurance is something that needs to be at the top of your list.

HOB homeowners insurance is a popular option for many first time buyers. Use this simple guide to help you better understand what HOB homeowners insurance is and if it’s the right option for you.

HOB Insurance: Insurance Coverage Basics – Definition

Home insurance is always a requirement when purchasing a home through a mortgage company. Even for cash buyers, home insurance is a good way to protect your investment.

While some of the more popular policies include HOB insurance, Mobile Home insurance and Condo insurance, all policies offer the following basic coverage:

Dwelling Protection: Coverage for your actual dwelling, just in case a fire breaks out or wind knocks your roof off.

Liability Protection: This section covers injuries to other people while on your property.

Personal Property: The personal property section covers items like electronics, furniture, and anything else of value within your home.

Other optional protection may include Earthquake insurance and flood insurance (both of which must be purchased as separate policies)

Understanding an HOB Homeowners Insurance Policy – Definition

In Texas, an HOB homeowners policy is best described as a hybrid policy. It combines certain items listed in both “open peril” and “named peril” insurance policies. Open peril insurance is a policy that names risks that are not covered, while a named peril policy lists risks that are covered.

Personal Property Coverage

This type of home policy offers coverage for personal property against 16 different named perils. Some of these perils include snow, ice, fire, falling objects and theft.

The actual dollar amount of coverage you’ll need will vary depending on the total value of items in your home. You can work with your insurance agent to determine what the right coverage is.

The HOB Home Insurance Policy is a Hybrid Policy

The HOB insurance policy is a hybrid of an open perils policy and a named perils policy by definition. With the HOB, your home is covered on an open perils basis and your contents (personal property) are covered on a named perils basis. An open perils policy does not list the perils your home insurance covers you for; rather, it lists the perils your home insurance does NOT cover. With a Texas ho b policy, If the damage to your home is not caused by something on the exclusion list, then you have coverage. A named perils policy specifically lists the perils that your personal property is covered for. If something happens to your belongings that is not on the list of covered perils, you do not have coverage.  United Home Insurance Paragould, AR offers the HOB.  For the actual structure, an HOB homeowners insurance policy includes 100 percent of your home’s value as coverage for rebuilding purposes.

Personal Property Coverage

This type of home policy offers coverage for personal property against 16 different named perils. Some of these perils include snow, ice, fire, falling objects and theft.

The actual dollar amount of coverage you’ll need will vary depending on the total value of items in your home. You can work with your insurance agent to determine what the right coverage is.

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Exclusion List for Your Home(HOB Insurance Definition)

The only perils that are excluded on your home are:

1. Earth Movement (earthquake coverage can be endorsed on)
2. Ordinance or Law (some coverage may be provided in your policy)
3. Water Damage (Sudden & Accidental Water Damage is automatically included; others can be endorsed onto the policy)
4. Power Failure
5. Neglect
6. War
7. Nuclear Hazard
8. Intentional Loss
9. Government Action
10. Collapse (some coverage may be provided in your policy)
11. Theft to a Dwelling Under Construction
12. Vandalism or Malicious Mischief (only if vacant more than 60 days)
13. Mold, Fungus, or Wet Rot (some coverage may be provided in your policy)
14. Wear & Tear, Deterioration
15. Mechanical Breakdown
16. Smog, Rust & Corrosion
17. Smoke from Agricultural Smudging & Industrial Operations
18. Discharge, Dispersal, Seepage of Pollutants
19. Settling, Shrinking, Bulging, or Expanding
20. Birds, Vermin, Rodents, Insects
21. Animals Owned by Insured

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Perils Insured Against for Your Belongings(HOB Insurance Definition)

The 16 perils that your belongings are protected from are:

1. Fire or Lightning
2. Windstorm or Hail
3. Explosion
4. Riot or Civil Commotion
5. Aircraft
6. Vehicles
7. Smoke
8. Vandalism or Malicious Mischief
9. Theft
10. Volcanic Eruption
11. Falling Objects
12. Weight of Ice, Snow, or Sleet
13. Accidental Discharge or Overflow of Water or Stream
14. Sudden & Accidental Tearing Apart, Cracking, Burning, or Bulging
15. Freezing
16. Sudden & Accidental Damage from Artificially Generated Electric Current

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Where The HOB Insurance Policy May Lack in Coverage(HOB Insurance Definition)

Although the HOB home insurance policy & HO B policy Texas is the most common protection found throughout the United States, it isn’t the best possible policy money can buy. There are two reasons for this:

1. Water Damage – the HOB policy will cover your home for most water damages, but it may not cover damage to your home caused from slow leaks. The reason we say “may” is that there are a few companies that offer all home insurance water protections with the Texas HO B policy, including slow leaks. Contact your company to find out which protections you have included in your policy.
2. Open Perils on Contents – this policy does cover your home on an open perils basis, but only covers your contents for the 16 perils listed above. The HO5 covers your home and belongings for open perils.

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