Homeowners insurance can vary tremendously depending on the homeowner and their property’s needs. There are eight policy types – or forms – for various property types and coverage requirements.
Ensure that you’re getting the best homeowners insurance for your property by understanding the different coverage options available.
HO-1: Basic Form
The coverage provided by the basic form HO-1 homeowners insurance plan is the most limited. An HO-1 only covers your home and personal property against ten specific types of damage or loss, and your home and personal property are insured for their actual cash value. HO-1s only make up 1.57% of home insurance policies countrywide and are not generally offered by insurance companies anymore.
HO-2: Broad Form
HO-2s insure your home’s structure at its replacement cost value and your personal property at its actual cash value. In addition to the perils covered by the basic form, an HO-2 protects your home and personal belongings from six additional risks. Broad form HO-2 policies are an improvement over the standard form policy and are more prevalent than HO-1s.
HO-3: Special Form
The most common type of homeowners insurance policy on the market is an HO-3, or Special Form coverage, which accounts for the vast majority of single-family home policies.
HO-3 policies provide all-risks coverage for your home and protect your personal property from the same perils as HO-1 and HO-2 policies. All-risks coverage means your property is protected from all risks except those specifically excluded by your policy.
HO-4: Contents Broad Form
HO-4 policies, also known as renters insurance, are designed specifically for those who rent their home or apartment. Renters insurance protects your personal property inside and outside of your rental property. For instance, if your laptop is stolen while traveling, your policy will cover the replacement cost. Renters insurance covers the same 16 named perils as broad and special form policies. In most cases, your personal property is insured at its replacement cost.
HO-5: Comprehensive Form
As its name implies, comprehensive homeowners insurance offers the most substantial level of single-family home coverage. The HO-5 policy covers your home and personal belongings against all risks. It also provides high coverage limits for valuable items such as jewelry, fine furs, and certain electronics. By default, residential and personal property are insured for replacement costs.
HO-6: Unit-owners Form
An HO-6 policy, also known as condo insurance, is designed for residents of a condominium or co-op. The amount of coverage you’ll require will vary depending on what your condo association’s HOA insurance covers. The following coverages are included in most condo insurance policies: personal property, loss of use, personal liability, medical expenses, and loss assessment.
HO-7: Mobile Home Form
Mobile home insurance is similar to an HO-3 policy but is tailored to mobile homes, which are not covered by a standard single-family home policy.
HO-7 policies cover, but are not limited to, the following types of mobile homes:
– Trailers, travel trailers, fifth-wheel trailers
– Single-wide manufactured and single-wide mobile homes
– Double-wide manufactured and double-wide mobile homes
– Sectional homes
– Modular homes
– RVs and park model homes
HO-8: Modified Coverage Form
HO-8 insurance is intended for homes that do not meet the standards required for most homeowner insurance policies. HO-8s, like HO-1 basic form policies, are named peril policies. These policies cover only ten perils and provide reimbursements based on the home’s actual cash value rather than the replacement cost. You may be eligible for an HO-8 if you reside in an older, high-risk home.