What is the main difference between HO-A and HO-B policies?
An HO-A policy is a “Named Peril” policy which means that the policy will list out what is covered and that is ALL that is covered. Anything outside of the listed items is automatically NOT covered. The HO-B policy is an “All Risk” policy meaning that it covers EVERYTHING unless there is a specific exclusion for something. With this type of policy if something unforeseen happens, it is typically covered. The “All Risk” policy also offers some endorsements that are not usually available on a “Named Peril” policy such as foundation coverage, continuous seepage and leakage coverage for water leaks and wind driven rain, and water backup for sewer backups into the home.
