If you’re shopping for homeowners insurance in Sacramento, you might come across the term HO-1 policy—sometimes called a basic form of home insurance. But what exactly does that mean, and is it the right choice for homeowners in California?
Let’s break it down.
🔍 What Is an HO-1 Policy?
An HO-1 policy is the most basic and limited type of homeowners insurance available. It covers your home against a short list of specific risks, known as “named perils.”
If a loss is not listed in your policy, it’s not covered—which makes HO-1 insurance less comprehensive than other types like HO-3 or HO-5.
🧾 What Does HO-1 Insurance Cover?
An HO-1 policy typically covers your home and belongings against 10 named perils, including:
- Fire or lightning
- Windstorm or hail
- Explosion
- Riot or civil commotion
- Damage from aircraft
- Damage from vehicles
- Smoke damage
- Vandalism or malicious mischief
- Theft
- Volcanic eruption
That’s it—if your loss doesn’t fall into one of those categories, an HO-1 won’t pay out.
🚫 What’s Not Covered Under an HO-1 Policy
HO-1 coverage does not protect against common issues like:
- Water damage or flooding
- Falling objects
- Weight of ice, snow, or rain (structural collapse)
- Power surges or electrical damage
- Sudden plumbing or HVAC issues
- Earthquakes or wildfires (which are significant risks in California)
Because of these limitations, most insurers no longer offer HO-1 policies in California.
🌆 HO-1 Insurance in Sacramento, CA
In Sacramento, where wildfire exposure, flooding, and severe weather can occur, an HO-1 policy generally isn’t recommended.
Most homeowners instead choose HO-3 coverage, which protects against all perils except those specifically excluded in writing.
HO-3 policies also provide liability protection and additional living expense coverage, which HO-1 plans often exclude.
💡 Why Homeowners Rarely Choose HO-1
While HO-1 policies are cheaper, they come with serious drawbacks:
- Limited protection
- No coverage for personal liability or medical payments
- No coverage for temporary housing if your home becomes unlivable
- Often doesn’t meet mortgage lender requirements
In short, it might save you a few dollars upfront, but it can cost you thousands later if disaster strikes.
✅ Bottom Line
An HO-1 homeowners policy offers only the bare minimum protection and is rarely available—or suitable—for Sacramento homeowners.
To properly protect your home, belongings, and finances, it’s usually smarter to upgrade to HO-3 or HO-5 coverage, which give you much broader protection.
👉 Need help finding the right homeowners insurance for your Sacramento property? Contact Yates today for expert guidance and a free quote comparison.