Homeowners Insurance Policies

The Sorgi Insurance CompanyHomeowners Insurance Policies

Homeowner's Insurance Policies

Most homeowners do not know that in North Carolina we have a variety of homeowner’s insurance 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

Actual cost to replace

Money in the house

$200 (HO 0465)





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



Trees Shrubs & other plants

5% of cov. A up to $500

5% of Cov. A up to $1,000

Deductible Waiver


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



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



Personal Injury



Special Coverage on contents


Includes breakage and mysterious loss

Policy Comparison - HO-3 Standard Homeowners, HE-7 Plus Form, HE-20, HE-21