Other types of homeowners insurance policies
Depending on your situation, you may be interested in another type of homeowners insurance policy. Here are some of the alternatives and how they differ from an HO-3.
HO-3 vs. HO-1
HO-1 insurance is a limited homeowners insurance policy that only covers you against 10 perils, while an HO-3 policy covers your home on an open perils basis and your belongings against all 16 main perils. HO-1 insurance typically offers bare-bones coverage and is not available in most states anymore.
HO-3 vs. HO-2
HO-2 is a broad form of homeowners insurance that covers all 16 perils, but it’s a basic policy compared to HO-3. HO-3 insurance is considered a special form policy because it protects your home from all perils except those specifically listed as exclusions.
An HO-2 may be a better choice if you don’t want more personal liability protection or feel comfortable with coverage for the basic 16 perils.
HO-3 vs. HO-4
HO-4 insurance protects your personal possessions against all 16 perils. However, damage to the structure of the actual rental unit itself isn’t covered, and your landlord will need to purchase separate insurance for this.
Additional living expenses may also be covered under this policy.
HO-3 vs. HO-5
An HO-5 is the most comprehensive type of home insurance. It covers personal property and structural damage, and you’ll have access to higher coverage limits. HO-5 insurance covers all perils that aren’t specifically excluded on your policy.
These policies are more expensive but worth considering if you have a higher-value home.
HO-3 vs. HO-6
An HO-6 is for people who own condos or co-ops. It protects structural damage and personal property against all 16 main perils.