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www.theconnectionsnj.com
973-584-2021
Fax: 973-584-5682
Email:
Frederick.Remington@verizon.net2 Golf Course Road, Chester Township
Monday-Friday 9-5 • Evenings & Saturday by Appointment
F
REDERICK
K. R
EMINGTON
Insurance Agency
Established in 1962
WE SOLVE ALL YOUR INSURANCE PROBLEMS
• Auto
• Annuities
• Homeowners
• Condo/Tenants
• Individual Life
• Health Insurance
• Medicare Supplemental
• Mobile & Motor Homes
• Water Craft
• Antique Autos
• Umbrellas
• Recreational Vehicles
• Flood
All Lines of Insurance
(Flood damage is not covered
by homeowners’ policies)
• Commercial Autos
• M & C Contractors’ Programs
• Worker’s Compensation
• Surety Bonds
• Internet Insurance
• Group Hospitalization and Life
• Business Owner’s Policy
• E & O and Professional Liability
• Employment Practice Liability
COMMERCIAL
PERSONAL
LICENSED IN
NEW JERSEY,
PENNSYLVANIA
& FLORIDA
YOU DO
NOT HAVE
TO SACRIFICE
SERVICE FOR
PREMIUM
COST!
FOR HOMEOWNERS
“One of the fine companies we represent, the Farmers Insurance Company of Flemington, is a
company that has been in business for over 150 years and has an excellent reputation for paying
claims. This company offers an HO-5 (for homes over $250,000 replacement cost and under fifty
years old) at the same price as an HO-3. Both policies cover most of the unforeseen occurrences
in life. The HO-5 is a step above. For example, contents are covered on an all-risk basis for insur-
able losses. In our area of New Jersey, the company provides a hydrant discount, even though
you do not have one within 1,000 feet of your home.
PLEASE CALL FOR A QUOTE!
W a r r e n Custom Picture Framing by BEVELED EDGE C U S T O M F R A M E R S 51 MT. BETHEL ROAD • ARCH PLAZA • WARREN 908-754-6772 www.bevelededgewarren.com Store Hours: Tues.-Fri. 10am-5pm • Sat. 10am-4pm Evenings by Appointment by Unique Frames • Friendly Service Archival Quality Owner Operated Since 1989 IN HOME CUSTOM DESIGN SERVICE PICKUP AND DELIVERY SERVICE AVAILABLE BEVELED EDGE FRAMING 20 % OFF ANY CUSTOM FRAMING Must present coupon when placing order. May not be combined with any other offers. Coupon expires 1/31/18. HOLIDAY SPECIAL When someone calls requesting a quote for homeowners insurance, I find they are not fully aware of the different types of cover- ages that are available. There is basic cover- age all the way to comprehensive. Most independent agents provide HO3 form of coverage in their quotes which is in the middle. This article offers a comparison between HO3 and HO5 form of homeown- ers coverage. HO5 is the gold standard comprehensive form that is available to most agents. Following is a breakdown of HO3 and HO5 plans. HO3 covers dwellings on an open perils (exposure to harm or injury) but limits per- sonal property coverage such as smoke, vandalism, ice, snow or sleet damage, elec- trical surges that damage equipment, fire, lightening and theft. HO5 has open perils on the dwelling same as the HO3 but HO5 does not limit the cov- erage and covers your property on an open perils basis. This covers the insured for all losses that are not specifically excluded. HO5 includes additional coverages such as basic higher limit for jewelry. Replacement costs is automatically included for contents. Mysterious disappearance of property is not covered on HO3 unless probability of theft is from a known location. HO5 covers mys- terious disappearance with no limitation. HO3 and HO5 cover rain damage to doors, windows and roof but the HO3 does not cover contents, only building damage. HO5 covers contents. HO3 Parts A and B (dwelling and out build- ings) covers direct physical damage and named perils on contents. HO5 covers Parts A, B and C (dwelling, out buildings and contents) on a direct physical damage basis (less chance of exclusions). Overall, HO5 policy is more appropriate for homes that have higher end contents such as paintings, antiques, oriental carpets, rare books, etc. You can endorse most policies to include additional coverages for items that have been excluded in the policy form. Endorsements come with additional premi- ums. HO5 negates the purchase of many of these additional endorsements as they are included in basic HO5 forms. HO3 and HO5 have basically the same cov- erage for most other potential losses but the primary differences between the two forms is HO5 is a step above. There are rating organizations that compa- nies can use in New Jersey such as ISO, MSO, AAIS (Insurance Service Office, Mutual Service Office and American Association of Insurance Services). HO5 is an ISO form where MSO calls it a MHO5. They have slightly different interpretations of the homeowners policy. Some compa- nies have their own filings with the State so it is hard to compare coverages. Under program highlights from MSO they include a single common provision form (MPLO1). This includes Section 1 (property) and Section 2 (liability). Basic and supple- mental coverages are identical in all forms. Section 2 coverage is also included in MPL01. Pure exclusion coverages that are found as exceptions to exclusions are shown separately as supplemental cover- ages in MSO programs. When I have a difference of opinion with a claims adjuster I go to information sup- plied by Rough Notes Company Inc. They are dedicated to educational advance- ment of insurance professionals. Their definition of homeowners insurance forms and coverages are normally adhered to by the profession. Some information is derived from Rough Notes Company Inc. and Mutual Service Office. DEFINITION OF TYPES OF HOMEOWNERS INSURANCE By: Frederick RemingtonPAGE 80
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