8 Types of Homeowners Insurance Policies You Should Know

There are various types of insurance policies we should definitely get covered and one of the most important insurance is Homeowners insurance. Homeowners insurance is one of the best buys you need to protect your home and its contents in the event of a disaster. However, not every homeowners insurance policy covers you against every threat. There are various different types of homeowners insurance because not all threats are covered by the same kind of insurance.

There are mainly eight types of homeowners insurance policy options available and all of them have comes with their own risk coverage. All of these insurance types also depend on your type of home and your coverage needs. 

Types of Homeowners Insurance

  1. HO-1: Basic Form
  2. HO-2: Broad Form
  3. HO-3: Special Form
  4. HO-4: Contents Broad Form
  5. HO-5: Comprehensive Form
  6. HO-6: Condo Owners Form
  7. HO-7: Mobile Homes Form
  8. HO-8: Older Homes Form

HO-1: Basic Form

HO-1 insurance is also known as a basic form of homeowners insurance and it is the most simple and least comprehensive type of policy. With the HO-1 policy, your home is covered, and personal belongings and liability are also covered at their actual cash value but personal belongings are not always covered.

The basic form is also a named-peril policy which means this policy mainly provides coverage for damage or loss caused by the following perils:

  • Explosion
  • Fire or Lightning
  • Vehicles
  • Smoke
  • Windstorm or Hail
  • Aircraft
  • Riot or Civil Commotion
  • Vandalism and Mischief
  • Volcanic eruptions
  • Theft


HO-2: Broad Form

HO-2 insurance is also known as broad-form homeowners insurance and it is more common than an HO-1 policy. It is a definite upgrade from the HO-1 insurance policy. HO-2 provides coverage wider variety of perils as compared to the HO-1 insurance policy. HO-2 insurance covers your home at renewal cost and personal belongings also be covered at their actual cash value. This type of policy is uncommon in society and it is also not recommended by lenders because it doesn’t provide liability coverage.

An HO-2 policy covers everything that is covered under the HO-1 insurance policy plus additional coverage for damage caused by the following six perils:

  • Weight of ice, snow, or sleet on a structure
  • Freezing
  • Accidental discharge or overflow of water or steam
  • Sudden/accidental tearing, cracking, burning, or bulging
  • Volcanic eruption
  • Sudden and accidental damage from an artificially generated electrical current, like power surges

HO-3: Special Form

HO-3 is also known as a special form of homeowners insurance and it is the most popular type of homeowners insurance policy in the market. In the HO-3 policy, your home will basically be covered at its replacement cost and your personal belongings will be covered up to their actual cash value. As compared to earlier mentioned homeowners insurance HO-1 and HO-2, HO-3 will cover many more other perils because, with the exception of certain perils that are expressly excluded by the policy, the HO-3 policy will offer coverage for damages to your home caused by any calamity. 

These are the following perils that are excluded and won’t be covered:

  • Flood
  • Earthquake
  • Sinkholes
  • Landslide or mudslide
  • Nuclear Accident
  • Neglect
  • Government seizures

HO-4: Contents Broad Form

HO-4 is commonly known as renters insurance because this insurance policy is specifically for those who are on rent or lease in an apartment, home, or condo. This renters insurance policy covers personal property at its replacement cost. This HO-4 insurance policy will provide the same kind of disaster coverage as HO-1 and HO-2 do. In the event that a designated risk damages your rental property, the renters insurance will often also pay for your living expenses.

These are the following perils covered in this renters insurance policy:

  • Artificial Electric Current
  • Explosions
  • Fire
  • Falling objects
  • Damage from an aircraft or vehicle
  • Freezing
  • Hail
  • Lightning
  • Riots or civil commotion
  • Smoke
  • Theft
  • Vandalism
  • Water damage from plumbing
  • Water heater damage
  • Weight of snow, or ice, and windstorms

HO-5: Comprehensive Form

HO-5 is also known as a comprehensive form of homeowners insurance. This type of insurance is mainly considered by newly built homeowners and by single-family homes. HO-5 is somewhat similar to the HO-3 insurance policy but the HO-5 insurance policy comes with more protection and also has a few key differences as well when compared to HO-3. HO-5 insurance covers both your home and personal belongings at their replacement cost and it is actually higher than the actual cash value.

HO-5 insurance policy includes limited coverage for these types of personal property:

  • Art
  • Jewelry
  • Electronics
  • Fine furs

HO-6: Condo Owners Form

HO-6 insurance policy is also known as a unit owners’ insurance policy and it is specifically designed for people who live in condominiums. This HO-6 policy varies in the amount of policy coverage and it mainly covers the interior or the items present inside and their personal belongings. HO-6 insurance policy actually depends on what the HOA insurance for your condo association covers.

HO-6 will mainly include coverage in the following situations:

  • Personal property
  • The walls, floors, and ceiling
  • Loss of use
  • Personal liability
  • Renovations, upgrades, or improvements

HO-7: Mobile Homes Form

HO-7 is also known as mobile home insurance and it is basically an HO-3 insurance policy but mainly specific to mobile homes. HO-7 insurance policy can’t be covered by a single-family home policy. Mainly mobile homes policy covers only the home while it is stationary or standalone instead of mobile homes. 

HO-7 insurance policy includes coverage for the following type of structures:

  • Trailers, travel trailers, and fifth-wheel trailers
  • Sectional homes
  • Modular homes
  • Park model homes and RVs
  • Single and double-wide manufactured homes
  • Single and double-wide mobile homes

HO-8: Modified Coverage Form

HO-8 is also known as modified coverage for old homes and it mainly provides coverage for homes that do not meet insurer’s standards for other types of policy coverage. You will eligible for an HO-8 insurance policy when you are living in an older home at high risk of loss or damage and it has a replacement cost is higher than the actual cash value. HO-8 insurance policies frequently offer protection from the same stated risks as an HO-1 policy.

Those older homes that have this type of policy include the following factors which are needed to be modified:

  • Constructed with aluminum wiring
  • Damaged roof
  • Outdated plumbing

What type of Homeowners insurance is right for you?

To get on the conclusion that what type of homeowners insurance is best suitable for you will depend on the following factors:

  • What type of home you’re covering?
  • What is your home age?
  • What is the condition of the home?
  • What type of coverage do you need?

If you want to know more about your homeowners insurance and any potential alternate options, kindly go through our other blogs or visit Amazing Flakes for insurance-related information and many more.

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