HO-3 or HE-7
Insurance
HO-3 or HE-7
Which Policy is Right for You?
Protect your home and everything in it with confidence. The Tom Needham Insurance Agency is proud to offer HO-3 or HE-7 insurance, a comprehensive policy designed to meet the unique needs of North Carolina homeowners. This policy goes beyond standard coverage to provide robust protection for your home, belongings, and personal liability.
Explore the features of HO-3 or HE-7 Insurance and see why so many North Carolinians trust Tom Needham Insurance Agency for their homeowner’s insurance needs.
North Carolina homeowners have two basic choices when it comes to home insurance. You can choose between an HO-3 or HE-7 insurance policy. Knowing the key differences between the two is the foundation for getting the coverage you need, in line with your budget. This handy side-by-side comparison will help you understand the main characteristics of each policy type
| Coverage | HO-3 Policy | HE-7 / 21 Policy |
| Replacement cost coverage on dwelling (cost to rebuild back to pre-loss condition) | Optional for an additional charge, 125%-150% cap | Guaranteed (full) replacement cost coverage |
| Replacement cost coverage on contents (no depreciation taken) | Optional for an additional charge | Included |
| Contents-covered perils | Named perils | All risk |
| Law & Ordinance | Caps at 10% of coverage on dwelling | Caps at amount of coverage on dwelling |
| Primary mortgage expense | Not Available | Pays the first mortgage payment while the residence premises is not fit to live in due to a covered loss, for up to 12 months/payments; part of Loss of Use coverage. |
| Watercraft | $1500 | $2500 |
| Trailers | $1500 | $3500 |
| Money sublimit | $200 | $1000 |
| Securities sublimit | $1500 | $5500 |
| Business personal property, on premises | $2500 | $5000 |
| Business personal property, away from premises | $500 | $1500 |
| Credit card/fund transfer card forgery | $500 | $5000 |
| Jewelry sublimit | $1500 (theft only) | $5500 (theft, misplacing or losing, $1500 per item limit) |
| Firearms sublimit | $10,000 (theft only) | $10,000 (theft, misplacing or losing) |
| Silverware sublimit | $10,000 (theft only) | $10,000 (theft, misplacing or losing) |
| Land coverage | Not available | Pays up to $10,000 to replace, stabilize, or rebuild the land necessary to support the dwelling or other structure as a result of a covered loss. This is additional insurance and no deductible applies. |
| Water back-up of sewers or drains | Optional for additional charge | Automatic coverage for up to $50,000; optional for up to policy limit at $25 charge. |
| Loss assessment | $1000 | $5000 |
| Personal injury | Optional for an additional charge | Included |
| Lock replacement | Not available | $500 (if keys are stolen) |
| Debris (tree) removal | $1000 for any one occurrence, regardless of the number of fallen trees | $2000 for any one occurrence with a $1000 limit per tree |
| Reward coverage | Not available | $2500 leading to the arrest and conviction of the person committing the crime, resulting in a loss and $5000 for the return of stolen covered property. This coverage is additional insurance. |
| Witness expense | Not available | $250/day loss of earnings and $50/day expenses up to a max of $3000 to appear as a witness in court to prosecute person charged with committing a crime against insured’s property resulting in a covered loss. This is additional insurance and no deductible applies. |
| Directors & officers coverage | Not available | Affords liability coverage up to policy limits when an insured acts in the capacity of an unpaid director or officer of a not-for-profit corporation or organization. |
| Deductible waived on losses exceeding $50,000 | Not available | Included |
| Property in vault coverage | Not available | Provides a single maximum limit of $50,000 for loss to or theft of silverware, jewelry, and/or securities in any one occurrence when such property is in a safe deposit box stored in a bank vault. |
| Trees, shrubs, other plants coverage | $500 per plant limit | $1000 per plant limit |
| Fire department service charge | $500 | $1000 |
| Power interruption coverage | Not available | Provides for loss of use for up to 7 days beginning after the first 2 days of loss of use. |
| Business pursuits of minors | Not available | Limit of liability applies to insured minors involved in occasional or part-time, self-employed business pursuits normally undertaken by minors. |
What HE-7 Homeowners Insurance Covers
HE-7 Homeowners Insurance offers extensive coverage tailored for homeowners in North Carolina. Here is an overview of what this policy includes:
- Your primary residence and its attached structures.
- Personal belongings, including furniture, electronics, and clothing.
- Additional living expenses in the event of temporary displacement.
- Personal liability protection in case of injury or property damage claims.
With HE-7, your home and your possessions are all protected under one comprehensive policy.
Open Perils Coverage
HE-7 Insurance provides open perils coverage for your home, meaning your property is protected against all risks except those specifically excluded in your policy. This broad scope of coverage ensures you have peace of mind knowing your biggest investment is safe from unexpected disasters.
Named Perils for Personal Property
When it comes to your personal property, HE-7 Insurance uses an all risk/named exclusion approach, meaning your belongings are protected against specific risks like fire, theft, vandalism, etc. Personal property is increased in an HE-7 to 70% of the dwelling amount. This offers clarity and transparency while ensuring the things you treasure most are safeguarded.
Increased Replacement Costs
One of HE-7’s standout features is increased replacement cost coverage. This means if the cost to repair or rebuild your home exceeds the insured amount due to rising construction costs, HE-7 increases the amount covered to rebuild. This is critical for North Carolina homeowners facing unforeseen price hikes following major storms or other natural disasters.
Personal Liability Coverage
Accidents happen. If someone is injured on your property or if you are found responsible for damaging someone else’s property, HE-7 Insurance offers robust personal liability coverage. This includes coverage for legal fees, settlements, and medical expenses, so you can protect your assets and financial well-being.
Loss of Use Coverage
If your home becomes uninhabitable due to a covered event, HE-7 Insurance provides loss of use coverage, covering additional living expenses such as hotel stays, food, and transportation until repairs are complete. This ensures minimal disruption to your life while your home is being restored.
Medical Payments Coverage
For minor injuries that occur on your property, HE-7 includes medical payments coverage, providing compensation for medical expenses regardless of who is at fault. It is a practical feature for maintaining good relationships with neighbors, visitors, and service personnel.
Other Structures & Coverage
- Coverage on other structures is doubled on an HE-7
- Building ordinance/law coverage is 100% of coverage A (Dwelling)
- Watercraft Liability Coverage
- An increase in coverage for fine arts, jewelry, firearms, and business property are all enhanced features of HE-7.
Why Choose Tom Needham Insurance Agency?
At Tom Needham Insurance Agency, we understand the challenges and risks of owning a home in North Carolina. With decades of experience providing dedicated service to NC homeowners, we are committed to delivering personalized coverage that meets your needs. Here’s why homeowners across the state choose us:
- Local Expertise: We are deeply familiar with North Carolina’s unique risks, including hurricanes, flooding, and severe storms.
- Comprehensive Policies: HO-3 or HE-7 Insurance offers coverage solutions that are tailored to protect both your home and your lifestyle.
- Exceptional Service: From answering your questions to assisting with claims, we prioritize transparency, responsiveness, and reliability.
- Peace of Mind: Your home is your castle, and we are here to ensure it is protected every step of the way.
With Tom Needham Insurance Agency, you’re not just a policyholder; you’re part of a community that genuinely cares about your protection and peace of mind.
Protect Your Home with HO-3 or HE-7 Homeowners Insurance Today
Your home deserves the best protection. Contact the Tom Needham Insurance Agency today to learn more about HO-3 or HE-7 Homeowners Insurance and get a free quote on every one of our many policies for your home. Our team is ready to help you make the smartest, most informed decisions for your property and your family.
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Whether HO-3 or HE-7,
Tom Needham will find you the perfect policy
Whichever policy best suits your needs and budget, Tom Needham Insurance will help you put together the ideal home insurance policy.
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