Types of Home Insurance

Home insurance is a crucial safeguard for your property, offering financial protection against unexpected events. However, navigating the different policy options can take time and effort. Whether you’re a homeowner, condo owner or renter, understanding these policies is essential for securing your home and belongings.

What Are the Different Types of Home Insurance?

The following are the different types of homeowners insurance policies:

• HO-1 (basic form)—This limited policy covers the physical structure of your home and personal belongings at their actual cash value. It protects only against specific named perils, such as fire, windstorms and theft. However, HO-1 policies are rarely sold nowadays.
• HO-2 (broad form)—A step up from HO-1, this policy offers more coverage. It can protect your home’s structure at its replacement cost value and may financially cover additional perils.
• HO-3 (standard form)—The most common type for single-family homes, HO-3 can offer broader coverage than HO-2. It can provide financial protection against most perils except those explicitly excluded in the policy.
• HO-4 (renters insurance)—Designed for tenants, HO-4 can financially cover personal belongings and liability but not the physical structure of the rented property.
• HO-5 (comprehensive policy)—Offering comprehensive coverage, HO-5 is the second most common policy for single-family homes. It can financially cover both the home’s structure and personal belongings at replacement cost value.
• HO-6 (condo owners policy)—Tailored for condo owners, HO-6 can financially cover personal property, liability and improvements within the unit.
• HO-7 (mobile home policy)—If you own a mobile or manufactured home, HO-7 typically offers the necessary coverage.
• HO-8 (modified coverage policy)—Specifically for older properties, HO-8 accounts for the higher cost of rebuilding compared to market value.

What Kind of Home Insurance Do I Need?

Finding the right policy depends on your specific situation and needs. Contact Five County Insurance Agency to discuss the policy that’s the best fit for you.