The Difference Between Texas Home Insurance Policies

If there is one thing that is true about Texas it's this; Texans love to stand out. Whether it's their ability to secede from the union, their new Cowboys stadium, or just their intense obsession with their state, Texans always do things their own way. Home insurance is no exception. While most of the country uses policy forms HO1, HO2, HO3, HO5 and HO8, Texas uses its own home insurance policy forms; the HOA, HOA+, HOB, and HOC (although most commonly used in Texas, a few other states have adopted these home policy forms as well). All types of home insurance policies can be found in Texas, so it is important to know which policies are the best. Read on to discover what Texas home insurance policies cover.

HOA: Basic Named Perils Policy
The HOA Home Policy is the most basic and simple home insurance protection. It is equivalent to the HO1 policy outside of Texas. The HOA policy will only protect you from 10 specific perils (a peril is an event or disaster that causes a loss or damage to your home or property. A few of the most common perils are fire, theft, wind, and hail). If something happens to your home other than these ten perils, you are not covered under the HOA. The ten perils are:

1. Fire or Lightning
2. Windstorm or Hail
3. Explosion
4. Riot or Civil Commotion
5. Aircraft
6. Vehicles (unless caused by the insured)
7. Smoke
8. Vandalism or Malicious Mischief
9. Theft (limit of liability on HO8 is usually $1,000)
10. Volcanic Eruption

HOA+: Broad Named Perils Policy
The HOA+ Home Policy provides broader coverage than the HOA policy. It is equivalent to the HO2 policy in most states. Like the HOA, the HOA+ still lists every peril you are protected from, but the list adds six more perils. This protection covers your dwelling and your personal property. The sixteen perils are:

1. Fire or Lightning
2. Windstorm or Hail
3. Explosion
4. Riot or Civil Commotion
5. Aircraft
6. Vehicles
7. Smoke
8. Vandalism or Malicious Mischief
9. Theft
10. Volcanic Eruption
11. Falling Objects
12. Weight of Ice, Snow, or Sleet
13. Accidental Discharge or Overflow of Water or Stream
14. Sudden and Accidental Tearing Apart, Cracking, Burning, or Bulging
15. Freezing
16. Sudden and Accidental Damage from Artificially Generated Electric Current

HOB: Basic Open Perils Policy
The HOB Home Policy is referred to as an open perils policy. That means instead of specifically listing the only perils you are protected from like the HOA or the HOA+, the HOB lists the perils your policy WON'T cover. If a peril isn't listed as being excluded, your home is protected. HOB home protection is much broader than HOA or HOA+ coverage. This open perils coverage only applies to the home. The HOB is most similar to the HO3 policy, but is slightly better because it typically includes additional water damage protection that an HO3 doesn't. With the HOB, your contents are protected from the same 16 perils that are listed in the HOA+ policy. The exclusions to the dwelling protection are listed below.

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. Mold, Fungus, or Wet Rot (some coverage may be provided in your policy)
13. Smog, Rust, and Corrosion
14. Smoke from Agricultural Smudging and Industrial Operations
15. Dispersal, Discharge, Seepage of Pollutants
16. Animals own by Insured
17. Birds, Vermin, Rodents, Insects
18. Wear and Tear, Deterioration
19. Settling, Shrinking, Bulging, or Expanding (of bulkheads, foundations, pavement, patios, footings, floors, roofs, ceilings)

If something happens to your home that is not specifically listed as one of the above exclusions, it is covered under the HOB policy. The HOA+ and the HOB are the two most common Texas home insurance policies.

HOC: Full Open Perils Policy
The HOC Home Policy is full open perils on both the dwelling and contents. This means that your home is covered for anything and everything that could possibly happen to it, minus the same exclusions listed above in the HOB policy. The only significant difference between the HOC and the HOB is that the HOC will cover your contents for open perils, while the HOB covers your contents for the 16 perils listed above in the HOA+ policy. The HOC policy most closely resembles the HO5.

The next time you are shopping for Texas home insurance, keep in mind that these will most likely be the types of policies you will come across. Good luck!