Archives for homeowners insurance coverage comparison

Texas Homeowners Options for Your Clients

May 15, 2015

Texas Homeowners FormSome companies have a “take it or leave it” or “one size fits all” approach to everything they do. At iMGA we know your clients have unique situations that require a range of options.

We’re happy to provide a variety of Homeowners coverage policy forms to help you in meeting as many of those situations as possible. When quoting an iMGA policy you’ll be able to choose between offering an HOA, HOA+ or HOB policy.

Here are the main differences between those and some of the reasons you might choose one over the other:

HOA

The most basic coverage is provided by the HOA policy. Its coverages are on an Actual Cash Value for specific named perils and is the most appropriate policy for older dwellings or dwellings that do not qualify for some reason for Replacement Cost coverage, or for your clients who simply want the lowest cost option. The named perils covered by an HOA policy include:

  1. Fire and Lightning
  2. Sudden and Accidental Smoke
  3. Windstorm, Hurricane and Hail
  4. Explosion
  5. Aircraft and Vehicles (unless vehicle damage caused by insured or occupant)
  6. Vandalism and Malicious Mischief
  7. Riot and Civil Commotion
  8. Theft

HOA+

Customers who do need or want and qualify for Replacement Cost coverage on their dwelling but do not qualify for an HOB (or wish to save some money by reducing some coverage) are ideally suited for an HOA+ (HOA Plus) policy. HOA+ policies cover a wider range of named perils than an HOA policy and generally cover the Dwelling for Replacement Cost (there are specific conditions under which the dwelling’s roof coverage might be reduced to Actual Cash Value, but those are the exception not the rule). The named perils covered by an HOA+ policy – subject to conditions, limitations and exclusions – are:

  1. Fire and Lightning
  2. Sudden and Accidental Smoke
  3. Windstorm, Hurricane and Hail
  4. Explosion
  5. Aircraft and Vehicles (unless vehicle damage caused by insured or occupant)
  6. Vandalism and Malicious Mischief
  7. Riot and Civil Commotion
  8. Theft
  9. Accidental Discharge or Overflow of Water or Steam within a plumbing, heating or air conditioning system or household appliance
  10. Sudden & Accidental Tearing Apart, Cracking, Burning, or Bulging
  11. Vandalism and Malicious Mischief
  12. Vehicles owned or operated by an insured or by tenant
  13. Fall of trees or limbs
  14. Weight of Ice, Snow, or Sleet
  15. Freezing of plumbing
  16. Collapse (subsidence not covered)
  17. Landslide (subsidence not covered)
  18. Breakage of glass

iMGA HOA+ policies ALSO cover the following (subject to conditions, limitations and exclusions):

  1. Water backup
  2. Mold remediation
  3. Foundation damage

HOB

Customers who qualify for an HOB have the option of buying this broadest coverage policy (though they may not always choose to for cost reasons). The HOB policy generally provides replacement cost coverage on the Dwelling (there are specific conditions under which the dwelling’s roof coverage might be reduced to Actual Cash Value, but those are the exception not the rule). The HOB policy is an “open perils” policy, meaning its language is flipped around and instead of listing the specific perils that are covered, it lists only the things that are NOT covered.

The HOB policy (subject to its conditions, limitations and exclusions) protects your dwelling from all perils EXCEPT FOR:

  1. Earth Movement
  2. Ordinance or Law (some coverage may be provided in your policy)
  3. Water Damage (some coverage provided in your HOB policy)
  4. Power Failure
  5. Neglect
  6. War
  7. Nuclear Hazard
  8. Intentional Loss
  9. Government Action
  10. Mechanical Breakdown
  11. Collapse (some coverage may be provided in your policy)
  12. Patios, footings, floors, roofs, ceilings)
  13. Mold, Fungus, or Wet Rot (some coverage may be provided in your policy)
  14. Smog, Rust, & Corrosion
  15. Smoke from Agricultural Smudging & Industrial Operations
  16. Dispersal, Discharge, Seepage of Pollutants
  17. Animals own by Insured
  18. Birds, Vermin, Rodents, Insects
  19. Wear & Tear, Deterioration
  20. Settling, Shrinking, Bulging, or Expanding (of bulkheads, foundations, pavement)

iMGA HOB policies also provide specific limited coverage the following (subject to conditions, limitations and exclusions):

  1. Water backup
  2. Mold remediation
  3. Foundation damage

ALL iMGA Homeowners policies also add Personal Injury Liability coverage at no additional charge.

At iMGA we make it easy for you to customize our products to provide the best combination of coverage and price possible for your clients – and our friendly staff is available to answer any questions you may have.

If you’re a Central or West Texas insurance agent and need a market that really understands the Texas personal property market – contact us.

Categories: Texas Personal Property Insurance Tags: , ,

A Freeze Can Cause a Real Mess for Homeowners

March 9, 2011

Texas weather is VERY hard to predict. In the middle of winter it might be 75 degrees one day and 25 the next. It’s completely normal to have a really nice March that somehow also includes a hard freeze late in the month.

Frozen Roof DamageTexas homeowners need to take precautions to minimize their losses due to freezes. With deductibles that easily exceed $1,000 and the high cost of repairing or replacing damage pipes, building walls and/or floors and contents lost to damage from the water, it’s in everyone’s interest to take preventive actions. Even more important, though, is that many policies don’t cover freezing damage claims. As a professional insurance advisor it’s important that every Texas independent agent know and explain clearly to their customers what is and is not covered.

This isn’t always as easy as it seems. As independent agents you’re able to offer multiple products from many different carriers, each with different optional coverages. This means dozens of potential combinations.

iMGA products offer a range of coverage for freezing or water damage:

  • The Basic HO-A policy does not provide any coverage for water damage or freezing.
  • Our Non-Admitted HOA+ covers freezing and resulting water damage as long as the originating point for the break is above the slab, foundation or surface of the ground (whichever is applicable).
  • Our Admitted HOA+ and our Non-Admitted HOB cover freezing and resulting water damage regardless of the originating point for the break.
  • With iMGA if freezing and resulting water damage is covered there is no sub-limit for the coverage – it’s available up to the applicable building and contents limits.

As you can see, there are a wide range of options. Your other carriers will have even more variations, including what limits may apply if any coverage is available. They may even be using completely different forms. Not everyone will want, need or be able to obtain the most coverage available. The important thing is that you understand the options and communicate them clearly to your clients.

Of course it’s also important they take precautions. Texas weather is, above all, unpredictable and avoiding a potential claim altogether is still the best possible solution.

Categories: Texas Personal Property Insurance Tags: , , , , ,

When is a Dwelling Policy Better than a Homeowners Policy?

February 15, 2011

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.

Categories: General Tags: , , , , , , ,
↑ Top of Page