It’s important to note that broad form homeowners insurance is fairly uncommon, and is not usually recommended by lenders as it doesn’t include liability protection. In addition to the basic form (HO-1) events, broad form policies also cover named perils such as artificial electrical current, cracking or other damage to pipes, falling objects, freezing, water or steam overflow and weight of snow or ice. The coverage of broad form (HO-2) policy's extends beyond basic form’s (HO-1) to include personal belongings and additional perils. Broad form homeowners insurance: HO-2 policy In recent years, this basic policy has become less common, as most lenders don’t consider them to provide sufficient coverage for homes.īasic form is also a named peril policy, meaning you will only receive coverage for damage from the following named disasters: damage from an aircraft or vehicle, explosion, fire, hail, lightning, riots or civil commotion, smoke, theft, vandalism, volcanic activity and wind. This means that while the structure of your home is covered, your belongings and personal liability are left unprotected. Basic homeowners insurance: HO-1 policyīasic form (HO-1) coverage only offers dwelling protection. Special form protection for personal belongings typically don’t cover events such as earthquakes, floods, government seizures, mudslides, ordinance updates, sewer backups and sinkholes. Though this means the structure of your home is covered for all different types of damage, your personal belongings are under a named peril policy. Special form homeowners insurance follows an open peril policy for dwelling protection.
This includes both resident and guest injuries, as well as protection in the event of legal action. This means that your insurance company will help you financially when repairing or replacing your home’s structure (including additional structures on the property), your personal belongings (even when it’s not inside your home) and any costs associated with injuries that occur at your home. The most common type of homeowners insurance, special form insurance (HO-3) includes dwelling, belonging and, liability coverage. HO-8: An HO-8 policy offers a more robust coverage option for older and historically significant homes.HO-7: A mobile home policy offers a very similar level of coverage as the special form, but for mobile homes instead of standalone houses.HO-6: Condo insurance covers the structure of the condo itself, the items inside, and the owner’s personal liability.HO-5: Comprehensive insurance is typically only considered for brand-new homes and includes more coverage than the special form version.HO-4: Created specifically for renters, HO-4 policies protect personal property and liability but don’t include dwelling coverage.HO-3: The most common type of homeowners insurance, special form insurance includes dwelling, belonging, and liability coverage.HO-2: Broad form insurance extends beyond basic forms coverage to include personal belongings and additional perils.HO-1: Basic form insurance only offers dwelling protection.There are eight types of home insurance policies:
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