Types of Homeowner's Insurance

There are 8 primary types of homeowner's insurance, each one intended to fulfill of different type of home insurance needs, including homeowners and renters insurance. Choose the type of policy that best meets your needs and ask about any riders, or secondary policies, you need to fill in the blanks.

HO1 was once the most common type of home insurance and protecting the structures and personal property against damage, loss, or theft. HO1 also protected the home and other structures against 10 specific perils, including vandalism and explosion. This type of insurance is still available in some places, but most states have discontinued its use in favor of HO5 protection.

HO2 is a limited form of home insurance that protects specifically listed areas against specifically listed perils. It does not provide property insurance. Because this type of insurance is more useful in an area where disasters are common and insurance expensive, it is sometimes referred to as mobile insurance or storm coverage.

HO3 offers coverage against major disasters such as floods, earthquakes, or war. It also includes injury liability to cover visitors who are injured on the property and property insurance to protect the insured person's personal property such as jewelry, appliances and furniture.

HO4 homeowner insurance is meant for people who rent or live in cooperative buildings. It is sometimes called the renters version of HO2 and HO3, as it provides all of the coverage of those policies with the exclusion of the building and other permanent structures.

HO5 is similar to HO3, but includes a wider range of coverage for the personal property contained in the home. Bodily injury coverage is included in HO5 and will assume full payment of medical bills for injured visitors.

HO6 is much the same as HO4 with increased coverage and protections. HO6 is referred to as condo insurance and covers all private areas belonging to the insured person but will not include public areas such as walkways, stairs, or building exterior.

HO7 is the all-inclusive version of HO3, with a full range of property and liability coverage. Because it is more expensive than HO3, HO7 policies are not as common, but should be considered if you live in areas which are prone to natural disasters.

HO8 is intended for older homes and pays out a higher amount than other home insurance policies. HO8 pays actual cash value for replacement items, including materials that are not readily available due to age and having been discontinued, minus depreciation costs. Depending on the age and condition of the home, full replacement may be available or HO8 coverage may be completely denied.