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Durham, Chapel Hill, Raleigh & the Greater Triangle Area Insurance Agency

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Home Insurance
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The Sorgi Insurance Agency

16 Consultant Place
Suite 102
Durham, NC 27707

Phone: 919-682-4814
Fax: 919-682-4906


Monday - Friday
8:30 a.m. to 5:00 p.m.

Home Owner Policies

Most homeowners do not know that in North Carolina we have a variety of homeowner’s policies. The main two I want to focus on are the HO-3 and the HE-7 and the replacement cost on your home.

In the event of a total loss, the HO-3 will give you the amount you list on the policy (which is your 100% amount) plus a possible 25% more for increase cost of construction. That gives you a total of 125% to rebuild your house. Of course you need to pay for the extra 25%.

The HE-7 is a guaranteed replacement cost policy. As long as you start with the 100% of what it cost to rebuild your house, then if anything happens, your house will be rebuilt back to the way it was regardless of what you have listed on your policy. In other words, you aren’t limited to the 125%.

A large portion of the insurance companies in North Carolina do not offer the HE-7 coverage form. So when you call to get a comparative quote be sure to ask which form they are quoting. You wont be getting apples to apples if you dont ask.

Always ask for the HE-7 form. The cost is usually less than the HO-3 and you get much more coverage.

HE-7 versus HO-3 Homeowners:

 Property Coverages



Guaranteed Replacement Cost

NO (HO-3220 adds 25% Max)

Typically 125% on HO-3

Yes Actual Cost to replace
Money in the house $200 (HO 0465) $1,000
Securities $1,500 $5,500
Jewelry Theft $3,000 must be evidence of break in $5,500 total ($1,500 per item, includes losing, misplacing & disappearance
Firearms Theft 10% of coverage C up to $10,000 $10,000 includes mysterious disappearance
Silverware Theft 25% of C up to $10,000 $10,000 includes Mysterious disappearance
Tree Removal-must hit structure $1,000 $2,000
Trees Shrubs & other plants 5% of cov. A up to $500 5% of Cov. A up to $1,000
Deductible Waiver NO YES-if loss over $50,000 deductible waived
Fine Arts & Antiques Must be scheduled Covered to actual value up to the total contents amount
Directors & Officers-non profit organizations only        N/A Included
Pre judgement interest within policy limits Paid as a supplementary
Personal Property Loss Settlement Actual Cash Value (ACV) can add RC additional charge Replacement cost
Ordinance of Law 10% of coverage A Part of Coverage
Loss of use from Power Outage On Premises power outage only On premises w/ 48 hr waitOff Premises w/ 48 hour wait
Food Spoilage Optional coverage add HO-0498 YES $500 no deductible applies
Personal Injury         NO         YES
Loss of Use Civil Authority 2 weeks 30 Days
Special Coverage on contents           N/A includes breakage and mysterious Loss