There are different types of Homeowner’s Insurance Policies to choose from called “forms.” The type of homeowner’s policy you buy depends on whether you own a standalone home, rented home or condo/co-op. However, before choosing a homeowner’s policy, you need to understand the level of coverage you want because each policy has its level of coverage.
Different Types of Homeowner’s Insurance Policy Forms
HO-1 is a basic policy which provides coverage of about 11 perils. Those include fire, lightning, windstorm, hail as well as an explosion, riots, and other events. This policy is rather limited, and it won’t cover the protection of your property or other belongings.
HO-2 is another basic homeowner’s policy which provides a broader coverage of your house. Unlike HO-1, this policy covers you against 16 perils including additional perils such as water damage, theft, vandalism, as well as accidental damages like an overflow of plumbing, heating air-conditioning, and household appliances.
HO-3 is one of the most common homeowner’s policy since it provides extended coverage for your property. It is a special homeowner’s insurance policy that protects your house from all 16 possible perils except for those specifically listed as excluded.
HO-5 is the premium version of HO-3 homeowner’s insurance policy. It covers all the 16 perils and others damages that are included. This homeowner’s policy works well for newer houses in particular. Due to its various benefits, HO-5 is relatively expensive compared to HO-3.
HO-6 is specifically meant for those living in condominiums and/or co-op residential buildings. This policy includes the damage repair and personal possession coverage, as well as liability coverage. However, each condo or co-op association has different insurance policies and levels of protection.
HO-4 is commonly referred to as “renter’s insurance,” this homeowner’s insurance policy covers personal property in a rented home or apartment. The owner of the property will usually cover the rental structure in the event of the 11 perils covered by an HO-1. However, it won’t include liability insurance, which you can buy separately.
HO-7 is almost the same as HO-3 policy, but it is intended for mobile and manufactured homes. It will cover all the perils, not including the ones listed as excluded.
HO-8 works especially well for older houses that have a replacement cost that exceeds the actual cash value of the home. Due to that reason, HO-8 policy form is frequently used to ensure registered landmarks and architecturally significant structures. Like the HO-1, the HO-8 only covers the 11 common perils.