Types of Home Insurance

There are 7 standardized types of home insurance, each with its own cost and coverage specifics. The type of insurance you need will depend on a number of factors, such as whether or not you own the home, what dangers are faced by homes in your region and the amount of personal property coverage you require.

HO1
This is sometimes called Basic Homeowners insurance, or "named perils" coverage. It protects against 11 named perils: fire, wind and hail, vandalism, theft, damage from vehicles and aircraft, riot or civil commotion, glass breakage, smoke, volcanoes, and personal liability. Personal property is included.

HO2
This type of coverage is also called "broad form" insurance because it covers 17 named perils, including all of those covered by an HO-1 policy. Floods and earthquakes are not included. Personal property is insured on a named basis, which means you will need a home inventory for the best protection.

HO3
This is the most common type of home policy. It covers all perils that are specifically excluded. Usually, the exclusions will be for flood, earthquake, or other broad-reaching disasters. Personal property is insured up to a percentage of the policy limit, and only for specifically named perils.

HO4
This type is called renters insurance because it is not meant to insure the structures, only personal property. Coverage can be purchased in varying amounts, but a home inventory will be required to verify contents and condition.

HO5
This type of coverage is sometimes called "all perils" insurance. It covers anything not specifically excluded. Personal property is likewise insured for all perils except those which are listed as exclusions.

HO6
This is also called condo insurance. It is similar to renters insurance, but does extend coverage to the residential portion of the structure. Additional structures and other features on the property are not included.

HO7
This type of policy is designed for older homes. It is meant to provide sufficient coverage for a home where the replacement cost would exceed the fair market value of the home. Where replacement cost coverage is an additional rider for most type of home insurance, it is a primary consideration for HO-7.