Risk in giving up how 5

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Posted: Thu Sep 02, 2010 7:42 pm Post subject: Risk in giving up how 5

Is it wise to go from a HOW 5 to a HOW3 home policy to save money?

veronica

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Posted: Thu Sep 02, 2010 9:32 pm Post subject:

Sil was good enough to cover this issue: http://www.ampminsure.org/home/ho5-ho3.html

tcope

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Posted: Fri Sep 03, 2010 12:17 am Post subject:

Sil did a great job explaining what the difference in an HO3 and an HO5. To answer the question, is it's wise to save money by dropping down to the HO3? as with everything insurance related, it depends. i would ask, whats the difference in price? 87% of home owners policies are HO3 (per my online research). personally, i like the HO3, especially when you properly add endorsments and save a lot of money. HO5 is the better policy, but is it worth double the premium? I'm not so sure, especially if the HO3 is properly endorsed. you should be able to sit down with your agent and comapare products. It's sounds like a good opportunity to save money and worth the time.

mbyork

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Posted: Fri Sep 03, 2010 3:41 am Post subject:

Quote:

as with everything insurance related, it depends.

Sad to say, it's true. There are differences in laws from one state to the next, from one company to another, from one policy to another with the same company, even when the "form" is the same.

It is generally a wise decision to enlist the assistance of a local agent you can work with to ascertain your coverage needs and then determine the best way to cover them. HO-5 could be the best choice, or, as mbyork writes, a properly endorsed HO-3 could save money and provide the coverage you require.

It's probably too complex to attempt on your own if you really don't understand insurance and are unwilling to read the contract.
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