What is an HO-1 insurance policy? (August 2025)

HO-1 insurance is the most fundamental type of homeowners insurance. HO-1 policy insurance offers financial protection if the named risks mentioned in the policy cause damage to your home.

In contrast to other policies, HO-1 insurance does not provide liability insurance, cover your personal belongings, or pay for additional living expenses. So, HO-1 coverage covers the building of your home.

Since they don't offer as much coverage as other types of home insurance, they are less popular than other types. Because of this, some states and insurers stopped selling HO-1 insurance policies.

Who needs HO-1 insurance?

An HO-1 policy offers the most basic coverage. However, it can provide coverage for an older building with high-risk insurance loss. HO-1 insurance can be a choice if you want to insure a structure that you own but is not your primary residence and only houses a few belongings.

In the states where HO-1 policy is offered, the policies don't meet the coverages mortgage lenders normally require for home insurance. So if you have a mortgage on your home, you'll probably need a more comprehensive policy than HO-1 insurance. HO-3 policies are the most typical type of homeowners insurance, and HO-5 policies offer the most robust coverage.

What does HO-1 insurance cover?

An HO-1 policy only covers some named risks. These are some typical coverages that HO-1 insurance offers.

• Damage from vehicles or aircraft
• Lightning or fire
• Explosions
• Smoke
• Windstorms and hail
• Theft
• Volcanic eruptions
• Vandalism
• Riots and civil commotion

You can contact your insurer to file a claim if one of these occurrences risks damages your house. You will get the payment for the projected damage once your insurer determines that the policy covers the incident. However, they will reduce the deductible sum. As a result, if the projected cost of repairs is $4,000 and your deductible is $1,000, your insurance provider will pay out $3,000 to you. Your insurer will not pay out on a claim if the risk that caused the damage to your home doesn't have coverage, such as damage brought on by the weight of ice, snow, or sleet.

How much does HO-1 insurance cost?

An HO-1 is less expensive than a typical HO-3 policy because it provides less coverage. Many factors influence the cost of

Many factors influence the cost of your home insurance coverage. For instance, the price you pay will vary depending on your state, the size and condition of your home, your claims history, the coverage, and the limits you choose. Another major factor is the size of your deductible. So, your premium will be less expensive the if the deductible is more.

Additionally, you might be able to get discounts on your insurance. Installing a security system, bundling policies with the same insurer, and not having a history of claims are the best ways to save money. To find the best policy, compare quotes from many insurers before choosing one.

Where can I get HO-1 insurance?

Only a few insurance companies still provide HO-1 insurance. So instead, you're likely to find HO-3 insurance covering around 16 risks. These additional risks include falling objects and the weight of snow, ice, or sleet.

Finding a home insurance company that provides HO-1 coverage may require research if your state does not currently offer it. Remember to verify with your lender to ensure your insurance satisfies the minimum requirements if you can buy an HO-1 policy. The insurance requirements of a mortgage business might not be met by HO-1 coverage.

What does HO-1 insurance not cover?

The insured party's liabilities and personal property are the two key things that an HO-1 policy does cover. However, there are situations where an HO-1 insurance policy is insufficient because it provides basic coverage. Therefore, the following coverages are excluded from the policy.

• Objects that fall
• Weight of snow, sleet, or ice
• Household systems getting frozen (AC or heating)
• Sudden rupturing, cracking, burning, or bursting of pipes and other household systems
• Accidental leaks or overflows of steam or water
• Sudden and unexpected Electrical damage from artificially generated current

Liability coverage: It is crucial because liability coverage offers financial protection in the case of a lawsuit as well as legal aid. Without it, you may be financially liable if you hurt or damage another person or their property.

Personal property coverage: An HO-1 policy would not compensate you for losing your clothing, furniture, or appliances if destroyed in a fire. Consider your personal property's value carefully if you're considering purchasing HO-1 insurance.

Medical payments to others: It will cover the medical costs if someone gets injured on your property. It typically includes the following.

• Medical expenses and payments
• Surgical costs
• X-rays cost
• Dental treatments
• Hospital and ambulance fees
• Nursing care
• Funeral services
• Prosthetic devices

Additional living expenses: These cover expenditures paid if you have to leave your house due to an insured loss. This coverage would pay for your stay if a fire damaged your home and you had to spend a few weeks or days in a hotel. Without this protection, you would be responsible for paying any costs associated with temporary lodging.

Extra exclusions

Additionally, HO-1 insurance doesn't provide coverage for damages due to the following.

• Mold
• Hurricane
• Flood
• Vandalism to unoccupied dwellings
• Earthquakes
• Wear and tear
• Damage by pets
• Intentional acts
• Negligence
• Enforcement of building codes and similar regulations
• Government acts

Choosing the best home insurance companies

Choosing the best form of homeowners insurance policy may seem like a difficult task with many coverages to consider. However, you have a few options because most of these policies are specialized. You should have a home insurance policy for those specific homes, whether you own a manufactured home or a condominium.

Traditional-style homeowners have the greatest alternatives, but remember that what matters is the type of coverage the insurance offers, not the type of policy. So first, determine what risks you want coverage in the policy. Then decide on the deductible, whether you're willing to accept actual cash value or insist on replacement cost value, and how much coverage you want. Choosing adequate coverage and policy limits will result in proper reimbursement when you submit a claim.

These are some of the top insurers you can consider.

• Lemonade
• State Auto
• Branch
• Hippo
• Stillwater
• Midvale
• Liberty Mutual
• Travelers
• Nationwide

HO-1 homeowners insurance coverage: What to consider

HO-1 policies aren't common since they provide coverage for your home only. Typically, you can use this coverage to protect your house against catastrophic damages or a total loss. However, suppose an insurer determines that you or your home are too risky for other types of homeowners policies. In that case, they may compel you to insure your home with an HO-1 policy. It usually happens for older properties.

Also, a lot of mortgage lenders won't accept HO-1 policies. However, a house should have insurance since it's an investment. It won't cost you much to buy home insurance. If you're interested in buying home insurance, the following are some supplementary plans you must consider.

• Broad Form Policy (HO-2)
• Special Form Policy (HO-3)
• Comprehensive Form Policy (HO-5)

While more common than an HO-1 policy, an HO-2 policy still falls short of the standard level of home insurance protection. The most comprehensive type of homeowners insurance is HO-5, while the most typical type is an HO-3 policy.

Way.com Summary

HO-1 policies offer the most limited homeowners insurance, covering only a few risks. It typically covers risks such as fire, lightning, wind, hail, explosion, smoke, vandalism, theft, and volcanic eruptions. Other risks include riots and civil commotion. Sometimes personal property inside the residence doesn't get coverage by an HO-1 policy. The majority of states no longer provide HO-1 insurance.

Always use Way.com's app or website to find your area's best home insurance policy. It doesn't matter whether you buy an HO-1, HO-3, or HO-5 policy, as long as it offers the coverage you require.

Looking for another type of homeowners policy? Here are the Seven different forms of homeowners insurance