Question

1. What is an HO-3 policy? (you may need to Google HO3)

2. What is the difference between actual cash value and replacement costs?

3. What are the similarities between a condo insurance policy and a renter's insurance policy?

4. Is my personal property covered if someone breaks into my hotel room?

5. Under what policy provision am I covered if my dog bites someone?

Answer 1

1. HO3 is one of the most comprehensive homeowners insurance policy. The policy covers the structure of the house but it does not cover the objects inside the house.

2. Actual cash value is the amount of money for which the property can be sold. It is different from replacement cost. After deducting depreciation value from the replacement cost, the actual cash value will be obtained.

3. Similarity is that both condo insurance and renter's insurance provide personal property and liability coverage. The difference is that condo insurance provides dwelling coverage also but renter's insurance does not provide it.

4. Yes, the personal property is covered if the person has home owners or renter's insurance policy. It covers personal property also.

5. Home owners and renter's policy covers against fog bites also but it has liability limits.