Types Of Home Insurance Coverage
Home insurance is a broad term that encompasses different types of coverage for houses, apartments, condos, mobile homes, tiny homes, landmarks, and historical homes. The following are the different types of home insurance:
1. HO1- limited coverage policy
This is the most basic type of homeowners insurance you can get and the most limited. It only covers specific perils outlined in your policy, which are 10 for HO1 policies. These perils include fire/smoke, lightning, explosions, theft, vandalism, hail/windstorms, damage from aircraft, damage from vehicles, riots, and volcanic eruption.
HO1 policies do not include personal liability coverage or personal property coverage.
HO2: broad form
HO2 policies are more popular than HO1 policies and cover the same perils, plus:
- Falling objects.
- Freezing of household systems.
- Accidental overflow or discharge of water.
- Sudden damage from artificially generated electric current.
- Sudden tearing apart, burning, bulging, and cracking of pipes and other important household systems.
- the weight of ice, sleet or snow.
HO2 policies also cover your personal property and even personal liability sometimes.
3. HO3: special form
Special form policies are by far the most popular home insurance policy. They are generally affordable and cover everything except anything specifically outlined in the policy. Common exclusions include earth movements, power failure, war, neglect, nuclear hazard, government action, among others. HO3 policies usually include all six core coverages; Dwelling, personal property, other structures, loss of use, medical payments to others, and personal liability.
4. HO4: comprehensive form
HO5 policies are the most expansive, but also the most expensive type of home insurance coverage. They are very similar to HO3 policies, but with the following differences:
- HO5 policies reimburse both personal property and dwelling coverage claims based on replacement cost value, which pays to replace the property. On the other hand, HO3 policies are usually actual cash value policies, which pay the replacement value minus depreciation.
- HO3 policies are named peril for personal property and open peril for dwelling. HO5 policies are open peril for both personal property and dwelling.
HO5 policies are favorable for new homes in low-risk areas with higher property values compared to the rest of the state.
5. HO8: older homes form
This type of policy is designed for homes that are:
- more than 40 years old
- don't meet all the cosmetic and structural update requirements found in HO3 policies. If you own an old home and want to qualify for a HO3 policy, you will have to update the HVAC, electrical, roofing and plumbing systems.
HO8 policies are similar to HO1 policies as they are named peril plans which only cover 10 perils.
6. HO4: Tenant's form
These are also known as renters insurance and are created for renters of homes and apartments where they live. It protects personal property and other parts of the home you own, such as the cabinets and fixtures you installed.
7. HO6: Condo Form
HO6 policies are for people living in condominiums and co-ops. The amount of coverage varies based on how comprehensive the master policy of the whole building is.
8. HO7: mobile home form
HO7 policies are identical to HO3 policies but are designed specially for mobile homes. This includes trailers, park model homes, RVs, sectional homes, and modular homes.