There are several types of home insurance policies that you'll need to know to select the right plan for you and your home.
HO-1: Basic Form
Also known as: Basic homeowners coverage
An HO-1 homeowners insurance policy is the most basic type of homeowners insurance policy. It is a bare-bones policy that only covers the dwelling, and it is only covered for named perils.
What types of dwellings it is designed/best for:
- Standalone homes
- Owner-occupied homes
What it covers:
- Fire/lightning
- Wind/hail
- Explosions
- Riots or civil commotions
- Damage from vehicles
- Damage from aircrafts
- Smoke
- Thefts
- Vandalism/malicious mischief
- Volcanic eruptions
What it does not cover:
- Open perils (all peril coverage)
- Floods
- Earthquakes
- Personal property
HO-2: Broad Form
Also known as: named perils homeowner coverage
An HO-2 homeowners policy is also a basic policy that covers personal property in addition to dwelling coverage. This form only covers the dwelling and personal property for certain named perils. It covers more named perils than an H01 policy.
What types of dwellings it is designed/best for:
- Standalone dwellings
- Owner-occupied dwellings
What it commonly covers:
- The 10 named perils covered under HO1
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or streams
- Sudden and accidental cracking or bulging of appliances used to service the building
- Freezing
- Sudden and accidental electrical damages from an artificial current
What it does not cover:
- Open perils (all-risk coverage)
HO-3: Special Form
Also known as: Open perils homeowners coverage
What types of dwellings it is designed/best for:
- Single and multi-family dwellings
What it covers:
- All risks except those specifically excluded for the dwelling at replacement cost
- All risks except those specifically excluded for personal property at actual cash value
What it does not cover:
- Earth movements
- Ordinances or laws
- Neglect
- Wars
- Nuclear hazards
- Intentional losses
- Government actions
- Collapses
- Mold, fungus, or wet rot
- Mechanical breakdowns
- Smog, rust, corrosions
- Discharge, dispersal, seepage of pollutants
- Settling, shrinking, bulging, or expanding
- Birds, vermin, rodents, insects
- Animals owned by the insured
- Water damage
- Power failure
- Thefts due to dwelling under construction
- Wear and tear, deterioration
>> Read more: A complete guide to HO3 home insurance policies.
HO-4: Contents Broad Form
Also known as: Tenant insurance coverage
What types of dwellings it is designed/best for:
- Rented apartments
- Rented homes
What it covers:
- The 10 named perils covered under HO1
- Weight of ice, snow, or sleet
- Falling objects
- Accidental discharge of water or overflow of water or streams
- Freezing
- Sudden and accidental cracking or bulging of appliances used to service the building
- Sudden and accidental electrical damages from an artificial current
What it does not cover:
- Earthquakes
- Floods
- Structural damages
>> A Complete Guide to HO4 Home Insurance Policies
HO-5: Comprehensive Form
Also known as: Comprehensive homeowners coverage
What types of dwellings it is designed/best for:
- Single-family homes
- Duplexes
- Townhomes
What it covers:
- All risks except those specifically excluded for the dwelling at replacement cost
- All risks except those specifically excluded for personal property at replacement cost
What it does not cover:
- Earth movements
- Ordinances or laws
- Water damage from floods
- Sewer backup
- Water seepage
HO-6: Condo Insurance or Unit-Owners Form
Also known as: Condominium or condo coverage
What types of dwellings it is designed/best for:
- Condominiums
- Co-op buildings
What it covers:
- Interior damages (depending on the covenants, either studs inward, wallboard inward, or paint/paper inward)
- Improvements and betterments
- Additions and alterations
- Loss assessments
- The 10 named perils covered under HO1
- Weight of ice, snow, or sleet
- Accidental discharge of water or overflow from water or streams
- Sudden and accidental cracking or bulging of appliances used to service the building
- Freezing
- Sudden and accidental electrical damages from an artificial current
What it does not cover:
- The exterior of the building
- Common properties
- Exclusions listed on the policy
HO-7: Mobile Home Form
Also known as: Mobile home or manufactured home coverage
What types of dwellings it is designed/best for:
- Single or double-wide mobile homes
- Manufactured homes
- Mobile home trailers
- Recreational vehicles
- Modular homes
What it covers:
- All risks except those specifically excluded for the dwelling at replacement cost
- Named perils for personal property at actual cash value
What it does not cover:
- Floods
- Hurricanes
- Mold
- Vandalism to vacant dwellings
- Wear and tear
- Property damage caused by pets
- Earthquakes
- Enforcement of building codes and building regulations
- Intentional acts
- Neglect
- Government acts
>> A Complete Guide to HO7 Home Insurance
HO-8: Modified Coverage Form
Also known as: modified home coverage
What types of dwellings it is designed/best for:
- Older homes that have not been updated (typically homes older than 40 years)
- Older homes that do not qualify for HO3 or HO5 policies
- Older homes that are owner-occupied
What it covers:
- Aircrafts
- Civil unrest and riots
- Explosions
- Thefts
- Wind and hail
- Fire and lightning
- Smoke
- Vehicles
- Vandalism and malicious mischief
- Volcanic eruptions
What it does not cover:
- Earthquakes
- Falling objects
- Flood damage
- Water damage
- Winter-related damages
>> More on HO8 Home Insurance
