What Homeowners Insurance Forms Are Available?
As mentioned previously, there are a handful of different homeowners insurance policy forms that cover various scenarios. Some may not apply to you, and some may be relics of the past, but there is undoubtedly one that you will need as a homeowner.
HO-1: Also known as “ basic form,” this is the most basic and limited of homeowners insurance policies. Given that these policies provide such limited coverage, they are all but extinct, and virtually no insurance companies continue to offer them.
HO-2: Also known as “ broad form,” this type of policy offers a broader range of insurance coverage than an HO-1.
HO-3: Also known as “ special form,” this is the most common home insurance policy currently available. It provides more expansive coverage than an HO-2 and has what’s known as “open peril” coverage, which means that the policy will cover repair costs from any peril unless it is listed as an exclusion. These policies also offer “ named peril ” coverage, which includes personal property coverage from perils named in the policy. These perils typically include:
Fire and smoke damage
Damage caused by the weight of ice, snow, and sleet
Damage from vehicles, such as cars, aircraft, and watercraft
HO-4: Also known as “ renters insurance,” this type of policy will typically cover personal property replacement costs if you rent property and experience damage to your personal belongings. Renters insurance does not cover damage to the actual unit being rented.
HO-5: The most expanded home insurance policies available. These policies typically have more covered perils as well as higher coverage limits.
HO-6: Also known as “condo insurance” or “walls-in coverage,” these policies cover condominium units, as well as the unit owners ’ personal belongings contained within the unit.
HO-7: Also known as “ mobile home form,” this type of policy is essentially a slightly modified HO-2 that applies to mobile/manufactured homes. HO-7s may not cover the same perils as an HO-2, so be sure to check the policy to get a clear sense of what is covered. Properties that qualify as mobile homes usually include:
Single-wide manufactured/ mobile homes
Double-wide manufactured/ mobile homes
Sectional homes or modular homes
Park model homes and RVs
HO-8: Also known as “modified coverage form,” this type of policy exists for older homes that do not meet an insurer’s standards for HO-2 or HO-3 policies. If your home fits this mold, you may need to upgrade certain portions of the property to meet building codes and qualify for other policies.
Obviously, if you’re a homeowner, you wouldn’t consider renters insurance or other forms that wouldn’t necessarily apply to your situation. The best thing you can do is read the finer coverage details of your policy to see what’s actually covered. If you see specific gaps in your coverage that could put you and your property at risk, it may be time to start considering endorsements.