The HOB insurance policy is a common home insurance policy in Texas. It provides excellent coverage for your home and good coverage for your personal property.
HOB Insurance Policy
HOB Insurance Covers Dwelling for Open Perils
The HOB covers your home (called the dwelling) on an open 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. If the damage to your home is not caused by something on the exclusion list, then good news – you have coverage!
HOB Insurance Dwelling Exclusion List
The standard HOB policy lists 21 perils that are excluded from protection. Below is a list of the perils excluded from dwelling coverage:
Although the list above is the default exclusion list for the HOB, there are some minor clarifications that need to be made.
First, most water damage is excluded, but not all. Sudden & Accidental Water Damage is covered by HO-B policies. Many of the other types of water damage, like Water Backup, can be endorsed onto the policy for an additional premium. You can learn about all the different types of water coverage here.
Second, some coverage for Collapse, for Mold, Fungus, or Wet Rot and for Ordinance or Law may be provided depending on the insurance company offering the HOB insurance policy. It is not common, but some policies will include carve outs for these perils.
Third, Vandalism and Malicious Mischief is only excluded if the dwelling has been vacant for more than 60 days. If you are living in the home, this type of damage to the dwelling will typically be covered through the HOB.
Finally, just because the H0B excludes certain perils doesn’t mean you can’t get coverage for them. There are many companies that offer earthquake coverage today, which is normally excluded.
HOB Insurance Covers Stuff for Named Perils
The HOB covers all your stuff (called personal property) on a named perils basis. A named perils policy specifically lists the perils that your personal property is covered for. If something happens to your belongings that is list on the covered perils, good news – you have coverage! If not, you’re out of luck.
HOB Insurance Personal Property Peril List
The HOB covers your personal property for 16 perils. Below is a list of all the perils that are covered:
Three of the named perils above are only covered if the damage is caused as a result of a sudden and accidental event. Those are (1) the discharge and/or overflow of Water or Stream, (2) Cracking, Bulging, Burning or Tearing Apart, and (3) Artificially Generated Electrical Current.
Other than that, if a peril from the list above damages your stuff, the HOB insurance policy should cover it.
Home Policy Comparison - Baseline HOB
