Homeowners Insurance

Which type of policy is which? Here is a guide to the types of basic homeowners insurance:

Policy Type Property Type Rating Description
HO-1 Homes Poor Very basic coverage. Only protects against the 14 specific perils it lists. Being phased out in many states. Usually protects against:

  • theft, vandalism, glass breaking, fire, lightning, external explosion, windstorms, volcanic eruption, hail, riot, civil commotion, vehicles, aircraft and smoke.
HO-2 Homes Good Also basic coverage. Insures against all the risks covered by HO-1 plus these:

  • the collapse of buildings, accidental discharge or overflow of water or steam, frozen plumbing, heating, air conditioning or domestic appliances, power surges, falling objects, damage from the weight of snow, ice or sleet.

Again, it only protects against the specific perils.
HO-3 Homes Better Most common homeowners policy. Protects your home, other structures, and loss of use against all perils except the ones it specifically excludes. Usually includes:

  • floods, termites, earthquakes, war, landslides, tidal waves and nuclear accidents.
HO-5 Homes Best Most comprehensive homeowners policy. Covers the home, other structures, loss of use and personal contents against all risks unless it specifically excludes any. Same as HO-3 except it extends to personal belongings.
HO-4 Renters Insures the renter’s personal contents against specific perils, but provides no structure or liability coverage (the homeowner’s coverage is up to the landlord).

  • If you opt for renter’s insurance, spring for replacement value coverage of your possessions vs cash value. This way you’ll be able to get new belongings if you need to make a claim.
HO-6 Condominiums Protects the condo’s interior structure and property; the part condo owners are responsible for, but offers no liability coverage.
HO-8 Special Homes Insures expensive, historic and/or irreplaceable homes as well as houses of little value in isolated areas. Only insures against perils listed in the policy and only pays actual cash value.

  • This type of policy is rarely offered and not recommended

Which type of policy is which? Here is a guide to the types of basic homeowners insurance:

Policy Type Property Type Rating Description
HO-1 Homes Poor Very basic coverage. Only protects against the 14 specific perils it lists. Being phased out in many states. Usually protects against:

* theft, vandalism, glass breaking, fire, lightning, external explosion, windstorms, volcanic eruption, hail, riot, civil commotion, vehicles, aircraft and smoke.

HO-2 Homes Good Also basic coverage. Insures against all the risks covered by HO-1 plus these:

* the collapse of buildings, accidental discharge or overflow of water or steam, frozen plumbing, heating, air conditioning or domestic appliances, power surges, falling objects, damage from the weight of snow, ice or sleet.

Again, it only protects against the specific perils.
HO-3 Homes Better Most common homeowners policy. Protects your home, other structures, and loss of use against all perils except the ones it specifically excludes. Usually includes:

* floods, termites, earthquakes, war, landslides, tidal waves and nuclear accidents.

HO-5 Homes Best Most comprehensive homeowners policy. Covers the home, other structures, loss of use and personal contents against all risks unless it specifically excludes any. Same as HO-3 except it extends to personal belongings.
HO-4 Renters Insures the renter’s personal contents against specific perils, but provides no structure or liability coverage (the homeowner’s coverage is up to the landlord).

* If you opt for renter’s insurance, spring for replacement value coverage of your possessions vs cash value. This way you’ll be able to get new belongings if you need to make a claim.

HO-6 Condominiums Protects the condo’s interior structure and property; the part condo owners are responsible for, but offers no liability coverage.
HO-8 Special Homes Insures expensive, historic and/or irreplaceable homes as well as houses of little value in isolated areas. Only insures against perils listed in the policy and only pays actual cash value.

* This type of policy is rarely offered and not recommended

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