Home Insurance Guide

Types of Homeowners Insurance: HO-1 to HO-8 Explained

12 min readComprehensive

Not all home insurance policies are created equal. Depending on your living situation, property type, and coverage needs, different policy forms offer varying levels of protection. Understanding the eight standard types of homeowners insurance (designated HO-1 through HO-8) will help you choose the right coverage for your specific situation.

Quick Comparison of All Policy Types

PolicyBest ForCoverage Type
HO-1Bare minimum coverage (rarely used)Named Perils
HO-2Budget-conscious homeownersNamed Perils
HO-3Most homeowners (most popular)Open Peril + Named
HO-4RentersNamed Perils
HO-5High-value homes, comprehensive coverageOpen Peril
HO-6Condo and co-op ownersNamed Perils
HO-7Mobile home ownersNamed Perils
HO-8Older, historic homesNamed Perils

Named Perils vs. Open Peril Coverage

Before diving into specific policy types, it's important to understand the difference between named perils and open peril (all-risk) coverage:

Named Perils Coverage

Only covers damage caused by specifically listed events. If a peril isn't named, it's not covered.

Common named perils: Fire, lightning, windstorm, hail, explosion, riot, aircraft, vehicles, smoke, vandalism, theft, falling objects, weight of ice/snow, freezing pipes

Open Peril (All-Risk) Coverage

Covers damage from all causes except those specifically excluded in the policy. Much broader protection.

Common exclusions: Floods, earthquakes, nuclear hazards, war, intentional damage, normal wear and tear, pest infestations

Detailed Breakdown by Policy Type

HO-1: Basic Form

Limited Availability

The most basic and limited homeowners insurance. Covers only the dwelling against 10 specific named perils. Personal property is not covered. Very few insurers offer HO-1 policies today.

What it Covers:
  • • Fire/lightning
  • • Windstorm/hail
  • • Explosion
  • • Riot/civil commotion
  • • Aircraft/vehicles
Best For:

Very budget-conscious homeowners in low-risk areas who own their home outright.

HO-2: Broad Form

Budget Option

A step up from HO-1, covering the dwelling and personal property against 16 named perils. More comprehensive than basic form but still limited compared to standard policies.

Additional Covered Perils:
  • • Falling objects
  • • Weight of ice, snow, sleet
  • • Accidental water damage
  • • Sudden cracking/bulging
  • • Freezing of plumbing
  • • Artificially generated electricity
Best For:

Homeowners seeking basic coverage at a lower cost than standard HO-3 policies.

HO-3: Special Form

Most Popular

The most common homeowners insurance policy. Offers open peril coverage for the dwelling and other structures, but named perils coverage for personal property. Provides excellent protection for most homeowners.

Dwelling Coverage:
Open Peril

Covers all risks except specifically excluded events

Personal Property:
Named Perils

Covers 16 specifically listed perils

Best For:

Most single-family homeowners. Offers the best balance of coverage and cost for typical homes.

HO-4: Contents Broad Form

For Renters

Commonly known as renters insurance. Covers personal property and liability but does not cover the dwelling structure (that's the landlord's responsibility).

Coverage Includes:
  • • Personal property (named perils)
  • • Personal liability
  • • Medical payments to others
  • • Additional living expenses
  • • Loss of use
Best For:

Anyone renting a house, apartment, or condo. Often required by landlords.

HO-5: Comprehensive Form

Most Comprehensive

The most extensive coverage available. Open peril protection for both dwelling and personal property. Ideal for high-value homes and those seeking maximum protection.

Dwelling Coverage:
Open Peril
Personal Property:
Open Peril
Best For:

High-value homes, homes with expensive belongings, and homeowners who want the most comprehensive protection.

HO-6: Unit-Owners Form

For Condos

Designed specifically for condominium and co-op owners. Covers the interior of your unit, personal property, and liability. The condo association's master policy typically covers the building exterior.

Coverage Includes:
  • • Interior walls, floors, ceilings
  • • Personal property
  • • Improvements/alterations
  • • Personal liability
  • • Loss assessment coverage
Best For:

Condominium and co-op owners. Check your association's master policy to understand gaps.

HO-7: Mobile Home Form

Mobile Homes

Similar to HO-3 but designed specifically for mobile and manufactured homes. Provides open peril coverage for the dwelling and named perils for personal property.

Coverage Includes:
  • • Mobile/manufactured home structure
  • • Unattached structures
  • • Personal property
  • • Liability protection
  • • Coverage while in transit
Best For:

Owners of mobile homes, manufactured homes, and trailer homes.

HO-8: Modified Coverage Form

Older Homes

Designed for older homes where the replacement cost exceeds the market value, or where meeting modern building codes would be prohibitively expensive. Typically provides actual cash value coverage rather than replacement cost.

Key Features:
  • • Covers 10 basic perils
  • • Actual cash value settlement
  • • Doesn't require code upgrade coverage
  • • More affordable premiums
Best For:

Homes over 40 years old, historic homes, and homes with unique architectural features.

Understanding Standard Coverage Components

Most homeowners insurance policies include several standard types of coverage:

Coverage A
Dwelling

Physical structure of your home

Coverage B
Other Structures

Detached garage, fence, shed (typically 10% of Coverage A)

Coverage C
Personal Property

Your belongings inside and outside the home

Coverage D
Loss of Use

Additional living expenses if home is uninhabitable

Coverage E
Personal Liability

Legal protection if someone is injured on your property

Coverage F
Medical Payments

Medical expenses for guests injured on your property

Common Exclusions Across All Policy Types

Events Typically NOT Covered

Floods (requires separate flood insurance)
Earthquakes (requires separate coverage)
War or nuclear hazards
Intentional damage
Normal wear and tear
Pest infestations

How to Choose the Right Policy

1

Determine Your Property Type

Single-family home, condo, mobile home, or rental? Each requires a different policy form.

2

Assess Your Risk Tolerance

Are you comfortable with named perils coverage, or do you want the comprehensive protection of open peril?

3

Calculate Your Coverage Needs

Ensure your dwelling coverage equals your home's replacement cost, not just its market value.

4

Compare Quotes

Get quotes for the same coverage levels from multiple insurers to find the best value.

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