Homeowners insurance offers protection against damage to a single-family dwelling. There are eight different policy types – or forms – for homeowners to choose from, each offering specific coverage. The most common form, HO-3, provides standard home and personal property coverage. It covers your dwelling at replacement cost and includes liability, additional living expenses and medical payments to others.
HO-1 policies are the most basic type of home insurance. They cover your dwelling and personal property against ten named perils, such as damage from aircraft and vehicles, explosion, fire or smoke, theft and vandalism. While HO-1 policies typically provide sufficient protection in most cases, they tend to exclude a few important coverages. For instance, they usually don’t include loss-of-use coverage or liability protection for people who get hurt on your property.
The HO-2 policy offers more protection than the HO-1 but still needs to be more comprehensive. It protects against named perils and may include coverage for legal liability and loss of use.
HO-2 policies also typically cover the physical structure of your home and attached structures like fences and garages. It covers personal property up to actual cash value, but you can usually add an endorsement to get replacement coverage. An HO-2 policy usually includes medical payments and additional living expenses coverage. However, it doesn’t typically provide coverage for earthquake damage.
HO-3 policies offer dwelling and property coverage on an open perils basis. Dwelling homeowners insurance Newark DE coverage extends to structures on the home’s property, such as fences and detached garages. HO-6 policies are for condos and provide similar coverage as HO-3 insurance but exclude damage from floods and other natural disasters.
HO-4 policies are for renters and cover personal belongings on an open perils basis, as well as liability and additional living expenses protection. They do not cover the structure of a rental house or apartment, which needs to be covered through a landlord policy.
Often called renters insurance, HO-4 policies cover the policyholder’s personal property and liability. They don’t cover the building structure or other buildings on the property, which the landlord’s policy would cover. HO-4 policies typically include loss of use coverage, which can help pay for temporary living expenses if the apartment or house becomes uninhabitable due to a covered peril. Roommates may be able to share an HO-4 policy, but it’s generally best for them to have their policies.
HO-5 policies offer more comprehensive personal property coverage than standard HO-3s and usually have higher property coverage limits. Unlike HO-3s, which reimburse on an actual cash value basis that accounts for depreciation, HO-5 policies typically reimburse replacement costs on personal belongings.
In addition, HO-5 policies frequently contain liability insurance, which might cover your legal or medical costs if you are found accountable for someone else’s injuries or property damage while they are on your property. This additional protection is often worth the added cost for homeowners looking to maximize their safety.
An HO-6 condo insurance policy provides property and liability coverage for individual owners of condominiums. It also pays an Owner’s allotted share of the Association’s master insurance deductible if their condo is damaged by wind or water. Dwelling coverage protects your unit’s interior from damage, including walls and built-in elements. Personal property coverage follows your belongings, protecting them outside your condo, like in a locked car or shed. Liability coverage includes legal fees if someone gets hurt in your condo. It also covers medical expenditures if someone is injured on the grounds.
HO-7 insurance safeguards mobile and manufactured homes, including trailers, sectional homes, RVs and modular homes. It also offers liability, personal property and loss of use coverage.
It covers you up to a specified limit if someone is injured at home. It’s generally much cheaper than auto insurance liability. This type of policy is ideal for older homes or those made with no longer common materials. It typically excludes flood damage, so you’ll need separate flood insurance.
HO-8 policies are intended for homeowners not qualifying for other policy types. They cover a limited number of named perils and pay claims at actual cash value. This policy covers the home’s structure and personal belongings for named perils only. It does not cover liability or additional living expenses. Older homes with outdated materials and building techniques qualify for this policy. It also includes historic houses and architecturally unique dwellings. It doesn’t cover earthquakes or flood damage, which requires a separate insurance policy.