What Are the Different Types of Homeowner’s Insurance Available?

What to do? 3

Homeowners Are Pulled in Many Directions When Trying to Find Good Home Insurance

Ok so in several previous posts here, here and here, I talked about homeowner’s insurance and dealing with the company through which I have my homeowner’s, Liberty Mutual.

I’ve learned a lot of good stuff that I’ll be sharing with you periodically; today I’m going to cover different types of home insurance people will be looking at.

So what are the different types of home insurance available to consumers?

Currently, the ISO has seven standardized homeowners insurance forms in general and consistent use. Of these HO-3 is the most common policy followed by HO-4 and HO-6.

Others that are less used, though still significant, are HO-1, HO-2, HO-5, and HO-8. Each is summarized below:

HO-1
A limited policy that offers varying degrees of coverage but only for items specifically outlined in the policy. These might be used to cover a valuable object found in the home, such as a painting.
HO-2
Similar to HO-1; HO-2 is a limited policy in that it covers specific portions of a house against damage. The coverage is usually a “named perils” policy, which lists the events that would be covered. As above, these factors must be spelled out in the policy.
HO-3
This policy is the most commonly written policy for a homeowner and is designed to cover all aspects of the home, structure and its contents as well as any liability that may arise from daily use, as well as any visitors who may encounter accident or injury on the premises. Covered aspects as well as limits of liability must be clearly spelled out in the policy to insure proper coverage. The coverage is usually called “all risk”. Also called an “open perils” policy.
HO-4
This is commonly referred to as renters insurance or renter’s coverage. Similar to HO-6, this policy covers those aspects of the apartment and its contents not specifically covered in the blanket policy written for the complex. This policy can also cover liabilities arising from accidents and intentional injuries for guests as well as passers-by up to 150′ of the domicile. Common coverage areas are events such as lightning, riot, aircraft, explosion, vandalism, smoke, theft, windstorm or hail, falling objects, volcanic eruption, snow, sleet, and weight of ice.
HO-5
This policy, similar to HO-3, covers a home (not a condo or apartment), the homeowner and its possessions as well as any liability that might arise from visitors or passers-by. This coverage is differentiated in that it covers a wider breadth and depth of incidents and losses than an HO-3.
HO-6
As a form of supplemental homeowner’s insurance, HO-6, also known as a Condominium Coverage, is designed especially for the owners of condos. It includes coverage for the part of the building owned by the insured and for the property housed therein of the insured. Designed to span the gap between what the homeowner’s association might cover in a blanket policy written for an entire neighborhood and those items of importance to the insured, typically the HO-6 covers liability for residents and guests of the insured in addition to personal property. The liability coverage, depending on the underwriter, premium paid, and other factors of the policy, can cover incidents up to 150′ from the insured property, all valuables within the home from theft, fire or water damage or other forms of loss. It is important to read the Associations By-laws to determine the total amount of insurance needed on your dwelling.
HO-8
It is usually called “older home” insurance. It lets house owners with higher replacement cost than the market value insure them at the lower market value rate.

Hope this helps you out and, as always, feel free to comment with any questions!

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One Response

  1. Don’t forget in you’re renting, Renter’s Insurance it brings peace of mind, especially if you ever have to make a claim. Do your homework and research renter’s insurance cost and coverage. You deserve the best insurance at the lowest price! Here’s a link for a good start to your research on Renter’s Insurance: Renter’s Insurance

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