The other day I had a very informative conversation with a public adjuster regarding homeowner’s insurance policies and what the typical homeowner knows about their policy. In that conversation, the public adjuster and I talked about the typical HO3 homeowner’s insurance policy and how most people have never even heard of the HO5 homeowner’s policy. I thought it would be important to note the advantages of an HO5 policy and suggest that if you are a homeowner seeking a policy, and your home is eligible, that you should consider the advantages that an HO5 policy offers.

Continue Reading Homeowner’s Policies – Do Homeowner’s Have a Choice of Products?

Les Knox and I had an interesting discussion regarding all risk insurance and named perils coverage while debating a loss on the Jersey Shore. Les referred to the policy as an "open perils" policy, and I referred to it as an "all risk" policy. The personal property coverage was written on a "named perils" basis. The trend is to refer to the modern "all risk" policy as an "open perils" policy, but I think it is largely semantics.

Continue Reading Open Perils and Named Perils Coverage–What is the Difference?

I have previously blogged about the pros and cons of purchasing earthquake insurance. This week, I write to discuss an associated topic – the differences between an all-risk and a named peril insurance policy, and which is better in a given situation.

Essentially, insurers write two kinds of policies for homeowners and small businesses: named peril and all-risk (also known as a comprehensive policy or an open peril policy by some insurers).

Continue Reading Named Peril or All-Risk Insurance: What’s the Difference and Which is Better in a Given Situation?