The HOC Home Insurance Policy is one of the best home insurance policies available in the United States. It provides excellent coverage for both your home and personal property.
HOC Home Insurance Policy
HOC Insurance Coverage is for Open Perils
The HOC insurance policy is open perils. This means the insurance policy does not list the perils that cover your home and personal property. Rather, it lists the perils your home and personal property does NOT cover.
If your home and/or personal property are damaged by a peril not found on the exclusion list, then you are covered. This policy provides extensive coverage, and as a result is one of the most elite home insurance policies available.
HOC Insurance Open Peril Exclusion List
The H0C policy usually excludes 21 perils from coverage. Listed below is the exclusion list that applies to both the dwelling and personal property:
H0C Insurance Exclusion List Clarifications
Although the list above is the default exclusion list for the HOC, there are some minor clarifications that need to be made.
Water Damage
HOC insurance policies exclude most water damage, but not all. It almost always covers Sudden & Accidental Water Damage. Other types of water damage, like Water Backup, can be endorsed onto the policy for an additional premium.
Collapse & Mold, Fungus, or Wet Rot
Your policy may provide some coverage for Collapse, for Mold, Fungus, or Wet Rot and for Ordinance or Law. It depends on the insurance company offering the HOC insurance policy.
Vandalism & Malicious Mischief
The HOC excludes vandalism and malicious mischief only if the dwelling has been vacant for more than 60 days.
Endorsements
Finally, just because the H0C excludes certain perils doesn’t mean you can’t get coverage for them. For example, earthquake, many types of water damage, flood, can all be added onto the policy for an additional premium.
HOC Insurance is a Replacement Cost Policy
The HO-C home insurance policy is normally written as a Replacement Cost policy rather than an Actual Cash Value policy.
Replacement Cost
Replacement cost coverage simply means that if anything needs to be replaced, it will be replaced with brand new materials at today’s cost, regardless what the material was worth at the time it was destroyed.
For example, if your house burns down, replacement cost policies should cover the home to be rebuilt with brand new lumber at today’s prices.
Actual Cash Value
Actual cash value policies depreciate the value of the material that was damaged before paying out on claims. This means you could be paying out-of-pocket the difference between the cost to replace your home and the money received from insurance.
Home Policy Comparison - Baseline HOC
Where does the HOC policy stand compared to other policies? It’s near the top, but not at the top. Here is a quick look at other home insurance policies and how they stack up to the H0C:
Less Coverage: HO1, HO2, HO8, HOA, HOA+, HO3, HOB
Roughly Equivalent Coverage: HO5
More Coverage: None; this is one of the best policies
