Basic Types of Insurance Policies
There are six basic types of homeowner’s insurance policies:
HO-1: This limited-coverage policy protects your home or specifically-identified possessions against damage from eleven perils, including fire or lightning, vandalism, or theft. This type of insurance is being discontinued in many states.
HO-2: HO-2 is similar to HO-1, but it protects against five additional perils.
HO-3: This policy protects against damage or loss of your home or your belongings, and provides liability insurance for visitors who are injured in your home. It protects against all perils except those specifically excluded, such as war or nuclear accident. This is the broadest, most popular type of homeowner insurance policy. HO-3 may also be available with a guaranteed replacement cost policy, which pays the full amount required to replace your home and all its contents, even if that sum exceeds your policy’s limit.
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HO-4: Also known as renter’s insurance, this policy covers your possessions and may provide liability coverage for guests or visitors injured while in your home. HO-4 does not protect the actual building, which should be covered by your landlord’s insurance.
HO-6: Similar to HO-4, this policy is for co-op or condominium owners. HO-6 provides coverage for liability and your personal property, as well as any parts of your unit that you own, such as a porch that you installed. The actual dwelling is covered by the co-op or condominium association.
HO-8: Designed for older homes, this policy provides dwelling and personal property coverage and usually reimburses for damage on an actual cash value basis.
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Home Insurance Basics is not an insurer and cannot issue home insurance policies. This site provides free information about home insurance policies and companies. The companies detailed have not endorsed or sponsored these pages. Products and services may not be available in all states.
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