What is Coverage B on a homeowners policy?
Coverage B, also known as other structures insurance coverage, is the part of your homeowners policy that protects structures on your property not physically connected to your home, such as a detached garage, storage shed, or gazebo.
Who is covered under an HO 3 policy?
A homeowners insurance (HO-3) policy is a coverage plan that covers your home’s structure, your personal belongings and liability in the event of damage or injury. Typically, an HO-3 policy will also cover additional living expenses and protection for other structures on your property.
What is Coverage B in a commercial property policy?
In general, Coverage A covers damage to the dwelling or house. Coverage B covers damage to other structures such as a detached garage, work sheds, etc. I recently came across a California appellate case, decided this past September, that discussed in some depth the difference between Coverage A and Coverage B.
What does special HO3 cover?
Homeowners Policy Special Form 3 (HO 3) — part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio, the HO 3 insures the described owner-occupied dwelling, private structures in connection with the dwelling, unscheduled personal property on and away from the premises, and loss of use.
What is excluded under Coverage B?
Coverage B excludes the same perils as your dwelling insurance. These perils would include earthquakes, normal wear and tear, negligence, or flooding just to name a few. Remember, flooding is not included within your standard homeowners policy, for flood coverage, you will need flood insurance.
How much coverage b do I need?
What’s the Standard Coverage B Percentage? The standard Coverage B percentage is typically 10% of your homeowners insurance policy’s dwelling portion. So a home with $200,000 worth of dwelling coverage would also have $20,000 in other structures coverage.
Which situation is not covered for liability under an HO-3 policy?
Typically, the following are excluded on an open peril policy: Freezing pipes and systems in vacant dwellings. Damage to foundations or pavements from ice and water weight. Theft from a dwelling under construction.
What is not covered under Coverage B?
While Coverage B homeowners insurance’s other structures protects the aforementioned items from unexpected perils, there are some exclusions in your coverage. Your policy doesn’t protect against earthquakes, floods, sinkholes, normal wear and tear and problems that have been caused by negligence.
Is HO3 named perils?
For your home and other structures, HO3 is an open-perils policy. That means your insurance company can pay for damage to your home unless it’s caused by an event listed in the policy as an exclusion.
Is coverage b required?
In insurance lingo, it’s also called Coverage B and is only included in homeowners insurance because renters and condo owners don’t actually own the property their home resides on. Therefore, they’re not solely responsible to pay for any damaged items, such as a fence, if a covered peril were to occur.