There are eight different types of homeowners insurance policies that are specially designed for different types of properties and coverage needs. Some cater to homeowners of traditional single-family homes — the most common type of policy — while others are designed for condos, mobiles homes, and renters.
Here’s a rundown of the different types of home insurance policies you can choose from based on your home and coverage needs.
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Types of homeowners insurance
HO-1: The most limited policy type for single-family homes, HO-1s generally aren’t sold by insurance providers anymore.
HO-2: A more common policy type for single-family homes and a slight upgrade from the HO-1.
HO-3: The most common type of homeowners insurance policy for single-family homes, with broader coverage than the HO-2.
HO-4: A policy type that is specifically for tenants and is referred to as renters insurance.
HO-5: The most comprehensive form of homeowners insurance and the second most common policy type for single-family homes.
HO-6: A type of coverage designed for condo owners.
HO-7: The type of policy you get if you own a mobile or manufactured home.
HO-8: A special type of homeowners insurance for older properties that cost more to rebuild than what they’re actually worth on the market.
HO-1: Basic Form
HO-1 homeowners insurance offers the least amount of coverage and is rarely sold anymore. It only includes coverage for the physical structure of your home and personal belongings — and only at their actual cash value. This means depreciation (AKA years of wear and tear) is subtracted from your final claim payout.
As a named-perils policy, it only covers your home and belongings against the 10 named perils specifically listed in your policy. These include:
Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Aircraft
Vehicles
Smoke
Vandalism
Theft
Falling objects
Unlike more robust home insurance policies, HO-1 policies don't include coverage for liability, medical payments to others, or additional living expenses. [1] This is one of the reasons why many states no longer offer HO-1 policies, and most lenders won't accept this type of home insurance when you take out a mortgage.
To put this into context, HO-1 policies only made up 1.8% of single-family home insurance policies nationwide in 2021, according to the National Association of Insurance Commissioners. [2]
Learn more >> HO-1 insurance guide
HO-2: Broad Form
An HO-2 policy offers more coverage than an HO-1 policy, but still not as much as a standard HO-3 policy.
With a broad form policy, the following are protected:
Physical structure of your home at its replacement cost value
Unattached structures at their replacement cost value
Personal property at its actual cash value
Additional living expenses
Liability
Medical payments to others
Another improvement in coverage compared to an HO-1 policy is the additional six named perils your home and other structures are protected against, which include:
Weight of ice, snow, or sleet
Accidental discharge or overflow of water or steam
Sudden and accidental tearing apart, cracking, burning, or bulging of a built-in appliance like a water heater, or centralized air conditioner or heating system
Freezing
Sudden and accidental damage from an artificially generated electrical current, like power surges
Volcanic eruption
HO-2 policies also aren't very common and only made up 6.7% of single-family home insurance policies countrywide in 2021, according to the NAIC. [3]
Learn more >> HO-2 insurance guide
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HO-3: Special Form
An HO-3 policy is the most common type of homeowners insurance on the market, accounting for 78.2% of home insurance policies in 2021, according to the NAIC. [4]
HO-3 policies include coverage for the physical structure of your home, other structures on your property, personal belongings, additional living expenses, personal liability, and medical payments to others.
By default, HO-3 policies cover your home at its replacement cost and your personal property at its actual cash value. However, most insurance companies will let you add a replacement cost personal property endorsem*nt to your policy for a small fee.
When it comes to perils, unlike HO-1 and HO-2 policies, HO-3 policies provide all-risks coverage for your home. Also known as open-perils coverage, all-risks coverage means your policy covers everything except the causes of loss that are specifically listed in your policy — called home insurance exclusions.
Covered perils
HO-3 policies protect your home and belongings from these 16 perils:
Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Aircraft
Vehicles
Smoke
Vandalism
Theft
Falling objects
Weight of ice, snow, or sleet
Accidental discharge or overflow of water or steam
Sudden and accidental tearing apart, cracking, burning, or bulging of a built-in appliance like a water heater, or centralized air conditioner or heating system
Freezing
Sudden and accidental damage from an artificially generated electrical current, like power surges
Volcanic eruption
Excluded perils
HO-3 policies exclude the following perils from coverage:
Ordinance of law
Earth movement
Water damage from flooding, sewer backups, or water that seeps up from the ground
Power failure
Neglect
War
Nuclear hazard
Intentional loss
See AlsoDo I Need Umbrella Insurance?Government action
Theft to a dwelling under construction
Vandalism or malicious mischief (if the home was vacant for more than 60 days)
Mold, fungus, or wet rot (except if it resulted from an accidental discharge or overflow of water)
Wear and tear
Mechanical breakdown
Smog, rust or other corrosion
Smoke from agricultural smudging and industrial operations
Discharge, dispersal, seepage of pollutants
Settling, shrinking, bulging, or expanding of parts of the structure like your foundation or walls
Birds, vermin, rodents, insects Animals owned by insured
Learn more >> HO-3 insurance guide
HO-4: Contents Broad Form
Better known as renters insurance, an HO-4 policy is specifically for people who rent a house or apartment.
HO-4 policies cover your personal belongings both inside your rental property and anywhere else in the world. In other words, if your laptop is stolen from your hotel room while on vacation, renters insurance may help reimburse you for a new one.
Renters insurance covers renters' property from damage or loss caused by the same 16 named perils found in HO-2 and HO-3 policies. Personal belongings are usually covered at their replacement cost, but be sure to check with your insurance provider to be sure.
Like HO-3 policies, renters insurance also comes with liability coverage and additional living expenses coverage if your apartment is damaged and you need to temporarily live somewhere else.
However, HO-4 policies do not include dwelling coverage for the physical structure of the home since these policies are designed for renters and not homeowners. If the apartment or house you're living in is damaged, it’s your landlord’s responsibility to fix it or file a claim using their own insurance coverage.
Learn more >> HO-4 insurance guide
HO-5: Comprehensive Form
HO-5 homeowners insurance provides the highest level of coverage for single-family homes.
It's designed for high-value properties that require higher dwelling coverage limits, extra protection for possessions and expensive keepsakes, and access to coverage add-ons not found on standard policies.If you get coverage through a company likeChubborAIG, you’re likely getting HO-5 coverage.
While HO-5 home insurance is very similar to HO-3 policies, there are some notable differences.
HO-5 policy
Dwelling and personal property are insured at their replacement cost by default.
All-risks coverage for both your home and personal belongings.
High coverage limits for expensive types of property with normally strict coverage limits, including jewelry, fine furs, and certain electronics.
HO-3 policy
Dwelling is insured at its replacement cost and personal property is insured at its actual cash value.
All-risks dwelling coverage but named perils personal property coverage.
Limited coverage for expensive types of property, like jewelry, fine furs, and certain electronics.
Because of the robust coverage you get with an HO-5 policy, rates are typically more expensive than any other policy type on this list. HO-5 policies only accounted for 13% of home insurance policies in 2021, according to the NAIC. [5]
Learn more >> HO-5 insurance guide
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HO-6: Unit-owners Form
Also known as condo insurance, an HO-6 policy is for people who live in a condominium or co-op unit. It protects the interior of your condo (aka dwelling coverage) and the personal belongs inside from the 16 perils listed in your insurance policy (the same found in HO-2 and HO-3 policies).
The amount of dwelling coverage you need in your condo policy varies based on what’s already covered under your condo association's master policy. A master policy typically covers the exterior structure of the condo building and any common areas.
Most condo owners will at least want enough dwelling coverage to cover the cost of upgrades or renovations to the unit, such as a remodeled kitchen or bathroom with custom tiles and fixtures.
Condo insurance also comes with additional living expenses, personal liability, medical payments to others, and loss assessment coverage.
Learn more >> Guide to HO-6 insurance
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HO-7: Mobile Home Form
HO-7 insurance, more commonly known as mobile home insurance, is basically an HO-3 policy that's designed specifically for mobile, manufactured, and other factory-built homes.
Here are the different types of mobile homes covered under an HO-7 policy:
Trailers, travel trailers, fifth-wheel trailers
Single-wide manufactured and single-wide mobile homes
Double-wide manufactured and double-wide mobile homes
Sectional homes
Modular homes
Park model homes and RVs
HO-7 policies include coverage for the physical structure of your mobile home, other structures on your property, personal belongings, additional living expenses, personal liability, and medical payments to others. Like with HO-3 policies, both your mobile home and personal belongings are covered by the 16 perils listed in your policy.
Learn more >> Guide to HO-7 insurance
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HO-8: Modified Coverage Form
HO-8 homeowners insurance is designed for older or historic homes with ornate features and other characteristics that would be difficult to replace in the event of a loss. You generally need HO-8 insurance if your home's replacement cost is higher than its market value.
HO-8 insurance covers the physical structure of your home, other structures on your property, personal belongings, personal liability, additional living expenses, personal liability, and medical payments to others.
Similar to HO-1 policies, HO-8 insurance is covered on a named perils basis and only covers 10 perils. If your home is damaged by a covered peril, HO-8 policies typically pay out the actual cash value of the structure of your home and personal belongings rather than its replacement cost.
Some carriers may also offer HO-8 policies that pay for damage to property that’s hard to replace on a functional replacement cost basis. For example, a home with antique windows and hardwood flooring may be replaced with cheaper and more modern replacements.
HO-8 policies only accounted for 0.4% of home insurance policies in 2021, according to the NAIC. [6]
Learn more >> Guide to HO-8 insurance
A licensed expert at Policygenius can help you decide which policy type you need
When it comes to the different types of homeowners insurance policy forms, you may still be left with unanswered questions while shopping for home insurance, such as: What does it mean if my homeowners insurance is an HO-3 policy? Is that a good thing or a bad thing? Is this the right type of insurance for me? Compare home insurance quotes with Policygenius and one of our licensed insurance experts will do their best to provide you with answers.
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Frequently asked questions
What is the most common type of homeowners insurance?![8 Types of Homeowners Insurance – Policygenius (1) 8 Types of Homeowners Insurance – Policygenius (1)](data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==)
The most common type of homeowners insurance is an HO-3 policy, which accounted for 78% of home insurance policies in 2021, according to the NAIC.
How do I choose what type of homeowners insurance I need?![8 Types of Homeowners Insurance – Policygenius (2) 8 Types of Homeowners Insurance – Policygenius (2)](data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==)
To figure out what type of homeowners insurance you need, first determine if you have a house, condo, or mobile home to insure, or whether you need renters insurance. You should be able to figure out the right policy for you simply based on that. For homeowners of a house, even though there are a few different options to choose from, you'll likely want an HO-3 policy. But if you're not sure, reach out to an insurance expert who can help you decide.
What is excluded from all types of homeowners insurance policies? ![8 Types of Homeowners Insurance – Policygenius (3) 8 Types of Homeowners Insurance – Policygenius (3)](data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==)
Damage caused by floods and earthquakes are typically excluded from every type of homeowners insurance policy. If your home is in a high-risk flood area or near an active fault and you need coverage, you’ll need to purchase a separate flood insurance or earthquake insurance policy.