Home Insurance Policies (August 2025)

Introduction

Are you looking for the ideal insurance policy to protect your home? The fact is that there are various types of home insurance policies, just as there are various kinds of houses. Your coverage requirements and the type of home you live in will determine the kind of homeowners insurance you require.

There are eight different types of home insurance policies you can choose from coverage. Knowing how these policies differ based on coverages and other factors is important. What kind of coverage you require decides the type you need to buy.

So, what are the eight types of home insurance policies? What are the perils they cover and not?

Types of homeowners insurance

These are the eight kinds of home insurance policies available.

• HO-1: The most basic and minimal single-family home insurance that is now nonexistent.
• HO-2: With a small upgrade from the HO-1 policy, it is the most commonly used policy.
• HO-3: With more comprehensive coverage, it is the most common home insurance policy used.
• HO-4: Also known as renters insurance, this policy is specifically designed for renters.
• HO-5: The second most popular policy type for single-family homes and the most comprehensive type of home insurance.
• HO-6: A specific home insurance policy for condo owners.
• HO-7: The kind of coverage you receive if you own a manufactured or mobile home.
• HO-8: A home insurance policy for older homes that don't match insurer guidelines for normal policy forms.

HO-1: Basic Form

The HO-1 homeowners insurance has the least comprehensive coverage. It exclusively covers your home and personal belongings against ten named perils. Your home and personal belongings get insured under their actual cash value when you buy an HO-1 policy. The policy covers the damage from the following ten perils.

• Theft
• Lightning or fire
• Falling objects
• Aircraft
• Vandalism
• Hail or windstorm
• Explosion
• Riot or civil commotion
• Vehicles
• Smoke

HO-2: Broad Form

This policy is an upgrade from the basic HO-1 policy and is more common to buy. An HO-2 policy offers coverage for your personal belongings and the structure of your home at replacement cost value. It also covers your home and personal property against six other named risks like the following.

• Volcanic eruption
• Ice, snow, or sleet weight
• Accidental water or stream overflow or discharge
• Freezing
• The cracking, burning, unexpected, and accidental tearing apart or bulging of appliances like a water heater, heating systems, or centralized AC
• Unexpected and unintentional damage from artificially produced electric currents like power surges

HO-3: Special Form

The HO-3 policy or special form policy is the most common policy available in the market. HO-3s offer all-risks coverage for your house and protect your personal property against the covered perils under HO-1 and HO-2 policies. You get protection for all named perils except those specifically excluded from the policy. This policy offers coverage for your home at its replacement cost value and personal belongings at their actual cash value.

These are the commonly excluded perils from an HO-3 policy.

HO-4: Contents Broad Form

The policy is especially for those renting a home or a flat. Your personal property gets coverage by renters insurance within your rental home and any place else in the world. The 16 named risks that the broad and special form policies cover also get covered by renters insurance. Typically, your personal property gets coverage for the replacement cost of it.

HO-4 policies also offer liability coverage and additional living expenses if your apartment becomes damaged and you relocate temporarily. The rented home's structure doesn't get covered by an HO-4 policy; your landlord is responsible for that.

HO-5: Comprehensive Form

It is the most comprehensive home insurance policy you can get. The policy is almost similar to an HO-3 policy, but there are some differences you must know.

HO-5 policy vs HO-3 policy

HO-6: Unit-owners Form

An HO-6 insurance policy, often known as condo insurance, is for those who reside in a condominium or co-op. Depending on what your condo association's HOA insurance covers, you may need different levels of coverage under the policy.

Suppose you have upgraded your condo by installing unique light fixtures. In that case, you'll probably need adequate dwelling coverage in your condo policy to cover the cost of those improvements. The policy also offers coverage for personal property, loss of use, personal responsibility, medical costs, and loss assessment coverage.

HO-7: Mobile Home Form

It is an HO-3 policy but designed to offer coverage for mobile homes. But if you own a mobile home, you must know what all types this policy cover. The policy covers the following types.

• Trailers, fifth-wheel trailers, and travel trailers
• Single-wide mobile homes and manufactured homes
• Sectional homes
• Double-wide mobile and manufactured homes
• Modular homes
• RVs and park model homes

HO-8: Modified coverage form

These are specially designed for homes that don't fulfill the insurer's standards for a home insurance policy. Suppose you live in an older house with aluminum wiring, obsolete plumbing, or a deteriorating roof. In that case, you will qualify to buy an HO-8 policy. To be eligible for HO-3 coverage, you'll have to repair your roof, install new piping, and change the aluminum wiring to copper.

Like an HO-1 policy, an HO-8 is a named peril policy offering coverage for ten perils. You will get a reimbursement based on the home's ACV rather than the replacement cost. This policy is vital as you can get protection for your high-risk property without upgrading or a four-point inspection.

What are named perils?

The insurers specify 16 threats as named perils you get protection against on your policy. You won't get coverage for damage from any other sources outside these 16 perils.

• Fire or lightning
• Theft
• Windstorm or hail
• Vandalism
• Damage from smoke
• Damage by aircraft
• Explosions
• Damage by vehicles
• Riots or civil disturbances
• Volcanic eruption
• Falling objects
• Freezing pipes
• Damage due to the weight of snow, ice, or sleet
• Water damage due to heating, plumbing, and air conditioning overflow
• Burning, cracking, and tearing of the water heater
• Damage from electrical current

What are open perils?

Unless specifically excluded in your policy, all losses to your property and personal belongings get covered under an open peril policy. An open peril policy normally does not cover the following threats.

• Freezing pipes and systems in empty dwellings
• Damage to pavements or foundations from ice and water weight
• Pests, pets, other animals
• Theft from a home under construction
• Hidden defects, pollution, corrosion, and industrial smoke
• Vandalism to unoccupied dwellings
• Settling, wear and tear
• Flawed construction, design, and maintenance
• Weather conditions that worsen other excluded sources of loss
• Government and associated acts

Bottomline

What home insurance policy you should buy depends on the coverage requirement. The most typical home insurance policy available is an HO-3 policy. If you want to get comprehensive coverage, then you must buy the HO-5 policy. If you're residing in a rented home or a flat, you should opt for the HO-4 policy or renters insurance.

Also, check whether the policy offers open peril coverage or named peril coverage. While named peril coverage only covers specified loss types, open peril coverage covers all losses unless specifically excluded from your policy.