Re: Re: Help! Homeowners Insurance Question

We are not affiliated with any insurance company.

[Home] [Insurance Quotes] [Follow Ups] [Post Followup]
[100 Insurers Message Board] [FAQ]

Posted by Mislead by PFS (143.115.159.54) on August 22, 2001 at 16:44:21:

In Reply to: Re: Help! Homeowners Insurance Question posted by Ken Young on August 22, 2001 at 04:45:38:

Actually, Ken, there are seven basic kinds of home insurance policies and they're pretty much the same regardless of where you live (except for Texas). The first is the Basic Homeowners policy, commonly referred to as an HO-1. Second is the Basic Homeowners plus or HO-2. The third type is the Extended or Special Homeowners (HO-3). Next you have the Renters (HO-4), which wouldn’t apply in this situation and only covers personal property. Next is the All Risk or (HO-5), this policy isn’t really used that much anymore and probably doesn’t apply to this situation. Next is the Condominium (HO-6) which, again, probably doesn’t apply here. Finally, you have the Basic Older Home (HO-8).

The two “types” that you mention are not really policies at all, but only describe how the insurance company will reimburse the policy holder in the event of the loss. Most homes are insured by the HO-2 or HO-3 policies which can use either the Actual Cash Value (ACV) or the Replacement Cost method of reimbursement.

Homeowners insurance works on the Principle of Indemnity, which states that the insurer will make good a loss or damage in such a manner that financially, the insured is neither better off nor worse off as a result of the loss. In other words, the insured is placed in the same position financially, as far as possible, as he occupied immediately before the loss. In effect, this principle aims to prevent the insured from making a profit out of his loss or gaining any benefit or advantage out of insurance. So, as long as the replacements were as good as what you had previously, the insurer has kept their end of the contract.

As Ken stated, check your policy to see which type of policy you have. Although, on some policies, there may not be a separate charge listed on the Declarations page for the Replacement coverage, so you may need to check with the insurer on whether or not you have that.

Also, as Ken stated, if you believe the repairs are “shoddy”, I would definitely take that up with the insurer.

Follow Ups:

Post a Followup

Name:
E-Mail:

Subject: Re: Re: Re: Help! Homeowners Insurance Question

Comments:
: Actually, Ken, there are seven basic kinds of home insurance policies and they're pretty much the same regardless of where you live (except for Texas). The first is the Basic Homeowners policy, commonly referred to as an HO-1. Second is the Basic Homeowners plus or HO-2. The third type is the Extended or Special Homeowners (HO-3). Next you have the Renters (HO-4), which wouldn’t apply in this situation and only covers personal property. Next is the All Risk or (HO-5), this policy isn’t really used that much anymore and probably doesn’t apply to this situation. Next is the Condominium (HO-6) which, again, probably doesn’t apply here. Finally, you have the Basic Older Home (HO-8). : The two “types” that you mention are not really policies at all, but only describe how the insurance company will reimburse the policy holder in the event of the loss. Most homes are insured by the HO-2 or HO-3 policies which can use either the Actual Cash Value (ACV) or the Replacement Cost method of reimbursement. : Homeowners insurance works on the Principle of Indemnity, which states that the insurer will make good a loss or damage in such a manner that financially, the insured is neither better off nor worse off as a result of the loss. In other words, the insured is placed in the same position financially, as far as possible, as he occupied immediately before the loss. In effect, this principle aims to prevent the insured from making a profit out of his loss or gaining any benefit or advantage out of insurance. So, as long as the replacements were as good as what you had previously, the insurer has kept their end of the contract. : As Ken stated, check your policy to see which type of policy you have. Although, on some policies, there may not be a separate charge listed on the Declarations page for the Replacement coverage, so you may need to check with the insurer on whether or not you have that. : Also, as Ken stated, if you believe the repairs are “shoddy”, I would definitely take that up with the insurer.

Please enter the characters in the image above.

[Home] [Insurance Quotes] [Follow Ups] [ Post Followup] [100 Insurers Message Board] [FAQ]