8 Types of Homeowners Insurance Policies

Homeowners insurance policies come in various forms, each designed to meet different needs and situations. In the United States, there are eight standard types of homeowners insurance policies, categorized mainly by the level of coverage they provide. Here’s a brief overview of each:

 1. HO-1: Basic Form

– Provides coverage against a narrow list of perils. It’s the most basic and limited policy, covering events like fire, lightning, windstorms, hail, explosions, and theft. Due to its limited coverage, this policy is not commonly offered or purchased anymore.

 2. HO-2: Broad Form

– Covers everything in HO-1, plus additional perils such as falling objects, weight of ice, snow or sleet, and water damage from plumbing, heating, or air conditioning overflow. It’s a named-perils policy, meaning it only covers the specific risks listed in the policy.

 3. HO-3: Special Form

– The most common type of homeowners insurance, offering a broader level of coverage. It covers all perils except those explicitly excluded in the policy (such as earthquakes, floods, and maintenance damage). It typically provides replacement cost coverage for the dwelling and named perils coverage for personal property.

 4. HO-4: Contents Broad Form (Renters Insurance)

– Designed specifically for renters, this policy covers personal property against the same perils as the HO-2 policy. It also includes liability coverage but does not cover the physical building itself.

 5. HO-5: Comprehensive Form

– Offers the most extensive coverage, insuring against all perils unless specifically excluded. Both the dwelling and personal property are covered on an open perils basis, providing broader protection than the HO-3 form. It’s well-suited for newer homes and high-value properties.

 6. HO-6: Unit-Owners Form (Condo Insurance)

– Tailored for condominium and cooperative unit owners, this policy covers personal property, liability, and specific parts of the condo unit that the policyholder owns or is responsible for, under the terms of the condo association’s master policy.

 7. HO-7: Mobile Home Form

– Similar to the HO-3 policy but specifically designed for mobile homes. It covers the dwelling, personal property, and liability, but it accounts for the unique risks associated with mobile or manufactured homes.

 8. HO-8: Modified Coverage Form

– Intended for older homes where the cost to rebuild might be higher than the market value. It covers the same perils as the HO-1 but pays for repairs or replacements with materials of similar kind and quality, without factoring in depreciation.

Each policy type caters to different housing situations and coverage needs. When selecting a policy, it’s crucial to evaluate the specific risks associated with your home and choose a policy that provides adequate protection against those risks.