HO3 Insurance Policy Limits — When to Consider Personal Articles Floater?

Agency Height
2 min readDec 1, 2019

The opportunities for unendorsed HO3 insurance policy are vast and can confuse young insurance agents. If want to give the best to clients, you should be careful. After all, if the homeowners don’t get the best solutions, coverages in the event of a loss might fall short.

More importantly, you could find yourself with an errors and omissions claim.

According to the IIABA, homeowners’ insurance alone drives 12% out of 29% of personal lines E&O claims against independent agents. This indicates that providing better protection for your client’s valuables will avoid accusations of advice omission.

A most clients have is that their HO3 insurance policy adequately covers their personal property.

HO3 insurance does provide content coverage under coverage C. But if you investigate the HO3 insurance policy, there are certain sub-limitations detailed in the plan (in fine print).

The HO3 insurance policy explicitly limits theft coverage for personal belongings like jewelry , computers, and money.

Typically, the HO3 policy restricts the loss of If you do not help them understand this sub-limit, their personal belongings might practically be uninsured when compared to its value. , watches, and furs for theft anywhere from $1000 to $2500 depending on the carrier or state. Additionally, there will be no coverage if it gets lost on vacation.

Similarly, the standard HO3 insurance policy provides a broad form of coverage for personal property, i.e., the provision for coverage is on named perils. It shows that the HO3 does not cover all risks.

Quick fixes

You can quickly these problems by adding endorsements. In the first case, you could add a scheduled personal property endorsement to the HO3 insurance policy. However, it always costs premium for add-ons.

On the other hand, when your clients want full protection for their contents, you could opt for adding an endorsement. Specifically, the one that provides coverage on an “ all-risk basis “ instead of named perils.

These fixes sound smooth and substantial, and most of the time, they are. But when it comes to the contents that are in the HO3 insurance policy’s special limits of liability, you must be careful.

Otherwise, the coverages will fall short in case of theft, and your client will suffer.

#insurance #insuranceagent #insuranceagency #homeownersinsurance #homeinsurance

Originally published at https://agencyheight.com on December 1, 2019.



Agency Height

Agency Height is an insurance blog that offers insurance agents content about the insights and queries of the industry to make their work more efficient.