What is a nh3 insurance policy?

FL . Plan Type: NH3. Coverage at the residence premises is provided only where a limit of liability is shown or a premium is stated. Coverages and Limits of Liability.

As your home is most likely your largest asset, you want to be sure it is covered adequately, but what is that magic number?  Between the purchase price and replacement cost  - how much coverage should you have on your homeowner's insurance policy?  HPM Insurance hopes to help guide you toward the right answer.

How Much Insurance Should I Have on My NH Home?

Whether you are a new homeowner or someone who has owned a home for years, having the right insurance coverage is critical in protecting your home and investment.  Some estimates show that 58% of houses in the US are under-insured by some 21%! To ensure you are not part of this statistic, here are some things to consider:

When you insure a home, your insurance company may require it to be covered for the replacement cost, and not the purchase price.  The reason is because many factors drive purchase price, such as supply and demand of home inventory and the property's location.  These factors do not necessarily impact the cost to rebuild a home but can significantly add to or reduce a home's purchase price.

Another reason why purchase price and replacement cost vary is because when you buy a house, you are also purchasing land.  Land is not a factor when calculating replacement cost on homeowner's insurance given you would still have the land even if the home were a total loss.

The age of your home is a critical factor in determining its replacement cost.  Many older homes have customized features like solid-wood doors and trim, built-in cabinets and crown-molding that are simply not standard in today's construction and thus cost more to rebuild and insure.

Even if a newer home, you will also want to consider the quality of the home's flooring, cabinetry, counter tops and built in features.  Are the features of your home mostly builder's grade or do you have more customized features such as hardwood and granite?  If you have invested in such features, you will want to ensure it is considered in the replacement cost calculation.

Another consideration are additions or finishing off basements, which can also impact the replacement cost of a house.  It may be time to reach out to your insurance professional to review the adequate coverage amount vs. what is listed on your homeowners insurance.

The insurance company does not want to under-insure your home or over-insure it either.  Like Goldilocks, the company wants it just right.  If you believe your home is over-insured, speak with your insurance professional.   Insurance companies utilize software that can easily calculate the replacement cost of a house by entering data like age of home, square footage, number and style of bathrooms, flooring, etc.  If you strongly disagree with this figure, most companies will consider an independent professional appraisal as well.  If your home is customized and needs someone to do a physical inspection, this too can often be arranged through your company, and often at no cost to you as again, your company wants to adequately insure the house.4.  What does Guaranteed Replacement Coverage mean on my NH Homeowners Insurance policy?

Guaranteed replacement coverage is a common endorsement on many NH homeowner policies; however, it can be a bit of a misleading.  It would be impossible to calculate the exact replacement cost of almost any home because construction costs will vary depending upon when the home needed to be rebuilt.

For example- a large hurricane makes the supply of lumber and materials low, so the price increases significantly.

Because these factors in the future are unknown, many companies offer a replacement cost endorsement that is added onto the homeowners insurance policy.  This coverage provides a level of protection between what you insure your home for and what it actually costs to replace it at the time of loss.

To get this endorsement though, you typically would need to agree to insure your home at 100% of the estimated replacement cost.  There are also different types of guaranteed replacement cost coverage.  Some are 100% guaranteed replacement cost so no matter how much more it costs to rebuild the home above the coverage limit, the policy will cover it.  Most guaranteed replacement coverages though are capped at a specific percentage, often 25% or 50%.

Because guaranteed replacement coverage is not automatic and can vary, speak with your insurance professional to ensure you have the right protection for you.

NH3 Regulation Confusion. NH3 Regulation Read DTN's coverage of the ATF announcement here: http://bit.ly/… Todd Neeley can be

Nearly every type of insurance policy that protects your living space will fall into one of these eight classifications.

The simplest and least comprehensive type of homeowners insurance provides coverage for only a handful of potential problems:

HO1 insurance policies usually only provide dwelling protection. Some insurance companies may allow you to add personal property coverage at an additional cost. Most mortgage lenders don’t consider this type of policy to be adequate coverage, so if you’ve financed your home an HO1 policy is likely not an option.

A broad form homeowners insurance policy will cover all the dangers included in basic form coverage, plus:

HO2 policies typically cover both dwelling protection and personal property. In some cases, they may also include personal liability coverage. However, they still only cover the specific damages listed in the policy. For example, these policies cover water damage from steam, but not from floods.

Special form policies are the most common type of homeowners insurance. HO1 and HO2 policies are examples of “named perils policies.” That means they only cover dangers that are specifically listed in the policy. HO3 policies are “open peril policies”. That means they’ll cover all dangers except those specifically excluded in the policy documents.

Most HO3 policies exclude the following types of damage:

Exclusions can vary depending on whether the insurer believes your home is at high risk for certain types of damage. For example, HO3 policies on homes in areas at high risk of wildfires will often have a fire damage exclusion. HO3 policies typically include dwelling protection coverage, other structures coverage, personal property coverage, and liability coverage—many will also include loss of use coverage. However, the personal property coverage is usually limited to a narrower range of perils than the dwelling protection coverage.

HO4 policies, more commonly known as renters insurance, are for people who rent rather than own their homes. Renters insurance policies typically cover all the same dangers as HO2 policies. These policies include personal property coverage and liability coverage, but don’t cover the physical structure of the house. Some HO4 policies may also include loss of use coverage for the tenant.

Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policies.

The biggest difference between HO3 and HO5 policies is that most HO3 policies are “actual cash value” policies, whereas typically HO5 policies are “replacement cost value” policies. An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy). HO5 policies also provide personal property coverage against a wider range of dangers than the typical HO3 policy. Many HO5 policies also have extra coverage for high-value personal property such as jewelry and artwork.

Not surprisingly, condo form insurance is for condominium owners. HO6 policies generally protect against the same types of dangers as HO3 policies. They provide dwelling protection coverage with a twist: HO6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building. These policies also include personal property and liability coverage and may include loss of use coverage.

HO6 policies also apply to other types of co-op living. Generally, a condo association or HOA will cover property damage in common areas, but will also require unit-owners to hold condo insurance for their units.

Mobile Home Form (HO7)

If you own a mobile home or manufactured home, you likely have an HO7 policy. Mobile home form policies are typically identical to HO3 policies, except they’re designed specifically for mobile and manufactured homes. Like HO3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well.

HO7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit. It’s important to remember that mobile home insurance and insurance for RVs are different, so make sure you’ve selected the right category.

There are different types of home insurance policy forms based on your living situation. Learn about forms such as HO-3 and HO-6 and what they cover.

Finding the right home insurance coverages starts with knowing what kind of policy form you need. A policy form represents the type of property insurance needed for a homeowner, condo owner, or renter. Here are the eight types of property insurance:

HO-1 polices are the most basic type of home insurance, offering limited coverage, and not available in most states. Your home’s structure will be protected against eleven specified perils, such as fire, lightning, windstorms and hail, but you won’t have liability or personal property coverage. Many mortgage companies won’t accept HO-1 policies as proof of home insurance.

The HO-2 policy covers all the common perils listed on a basic form, plus seven additional perils including falling objects, certain sudden or accidental damage, and the weight of ice, snow, or sleet. Broad form policies only cover “named” perils—if the peril isn’t explicitly stated on your policy then you won’t be covered. HO-2 policies will cover your personal property and, in some cases, personal liability.

The most common type of homeowners insurance is the HO-3 policy. HO-3 policies offer more expansive coverage than HO-2s, meaning that your home’s structure is safeguarded against all perils except for those specifically excluded (for example, earthquakes and floods) in your policy. Additionally, HO-3 insurance protects against damage to your belongings from named perils and provides personal liability coverage if you’re sued.

Learn more about how homeowners insurance works and what home insurance covers.

Also known as “renters insurance,” the HO-4 policy won’t cover the home’s structure. HO-4 insurance is designed for renters only, with coverage for loss of use (if the renter is unable to live in their rented house or apartment), personal property, and liability.

Learn about how renters insurance works and what renters insurance covers.

The HO-5 policy offers more protection than any other type of homeowners insurance. Personal property losses are repaid based on the replacement cost for the item, instead of the actual cash value. You’ll have higher coverage limits and less restrictions on perils. Learn about the difference between replacement cost vs. actual cash value.

Like HO-3s, the HO-5 policy covers damage to your home’s structure from perils that aren’t written into your policy as excluded. The difference lies in how your personal property is covered: The HO-3 policy won’t insure against damage to your belongings from a peril that isn’t explicitly listed on your home insurance policy. HO-5 insurance, conversely, will cover damage to your items from any peril that isn’t excluded on your policy. HO-5 policies are priced higher than HO-3s because the coverage is so broad.

HO-6 insurance applies to condo owners. The amount of dwelling coverage needed on a HO-6 policy will depend on how much of your structure is covered by your condo/homeowners association.

Like HO-3s, HO-6 policies cover personal property, personal liability, and additional living expenses. Condo owners, however, aren’t always responsible for common areas outside of their unit, which are often covered by their homeowners association. The HO-6 policy caters to the condo owner, while HO-3 policies are designed to cover all areas of a property.

Learn how condo insurance works and what condo insurance covers.

Sometimes referred to as the MHP (mobile home policy), the HO-7 policy protects mobile or manufactured homes.

HO-8 insurance is reserved for older properties, typically built more than 40 years ago. The HO-8 policy functions like standard home insurance, but may include certain provisions to insure an aging home.

Lender Requirements: Your housing lender will require you to cover the house for at least the amount of the mortgage or the replacement cost of the dwelling."Coverage B: Other Structures: Covers damage"Coverage C: Personal Property: Covers dama..."Coverage A: Damage to House: Covers dama..."Coverage D: Additional Living Expense: Covers

This gives you protection against sudden increases in construction costs due to a shortage of building materials after a widespread disaster or other unexpected

Homeowners Insurance Coverage Categories — Special Form (HO3). Special form policies are the most common type of homeowners insurance."Rating:

Learn more about the different types of homeowners, condo and renters insurance policies and find out which is best to protect your property.