You might be surprised to learn that there are cases where – even for a homeowner – an iMGA Texas Dwelling Policy (TDP3) with liability coverage added offers more coverage than a Texas Homeowners policy (either HOA or HOA+). As a professional independent insurance agent it is important that you know the differences so you can offer the coverages that best fit your clients’ needs.
Where an iMGA TDP3 Policy is Better
- Covers all perils not excluded (commonly known as “All risk” or “open perils” coverage) vs. named perils on HOA/HOA+
- Loss of Use Coverage – 20% vs. 10% for HOA/HOA+.
- No deductible for Fire and Lightning, and only one deductible. HOA/HOA+ has a deductible on all perils including fire and lightning and a separate deductible for wind and hail losses.
- Wind-driven rain IS covered. It is not on an HOA/HOA+ policy.
- There is no coverage for Fire, Lightning and Vandalism and Malicious Mischief after the dwelling has been vacant for 60 days. On an HOA/HOA+ policy there is no coverage for any cause of loss after vacancy for 60 days.
- There is no subrogation clause. HOA/HOA+ policies do have a subrogation clause.
Where an HOA+ (“HOA Plus”) Policy is Better
- TDP3 doesn’t provide coverage for business personal property, property of guests or residence employees away from the premises. HOA/HOA+ policy does except for business personal property.
- Both provide a 10% extension of personal property off premises. On the TDP3 this is not additional insurance and does not increase the personal property (Coverage B) limit.
- TDP3 covers only utility failure under Consequential Loss. HOA/HOA+ covers loss due to change in temperature as a direct result of damage to the dwelling, equipment in the dwelling including damage to any power, heating or cooling equipment (including connections and supply pipes not in or on the dwelling under Consequential Loss.
- HOA/HOA+ provides some Automatic Removal coverage and In-Transit coverage. The TDP3 does not.
- The TDP3 does not provide glass breakage as a named peril insured against.
- The TDP3 does not provide any coverage for theft of personal property.
Of course every policy can have unique conditions and endorsements, so it is important that you carefully read and understand all the policy language.