Types of Homeowners Insurance Policies
Homeowners insurance policies in the U.S. are generally categorized into standard forms, each designed for specific property types and coverage needs. RMH Insurance Group provides homeowners insurance in Warsaw, IN and surrounding areas.
These forms are usually labeled HO-1 through HO-8.
HO-1: Basic Form
Provides limited coverage for a small set of named perils such as fire, theft, vandalism, and certain weather events. Rarely offered today due to its narrow protection.
HO-2: Broad Form
Covers more named perils than HO-1, including damage from falling objects, the weight of snow or ice, and accidental water discharge. Still limited to the perils listed in the policy.
HO-3: Special Form
The most common type for standard homes. It insures the dwelling against all perils except those explicitly excluded, while personal property is still covered on a named-peril basis.
HO-4: Renter’s Insurance
Designed for tenants. Covers personal belongings and liability but not the building itself, since that is the landlord’s responsibility.
HO-5: Comprehensive Form
Offers broader coverage than HO-3, with open-peril protection for both dwelling and personal property. Often includes higher limits for valuable items.
HO-6: Condo Insurance
Covers the interior of a condominium unit, personal property, and liability. The building’s exterior and shared areas are typically covered by the condo association’s master policy.
HO-7: Mobile Home Form
Similar to HO-3 but adapted for mobile or manufactured homes, which have different structural and risk considerations.
HO-8: Modified Coverage Form
Designed for older or historic homes where replacement costs may exceed market value. Often covers repairs based on actual cash value instead of full replacement cost.
Choosing the Right Policy
The right homeowners insurance depends on property type, budget, and the level of protection desired. Homeowners should compare coverage limits, exclusions, and optional endorsements—such as flood or earthquake insurance—to ensure adequate protection for their specific risks.If you have any questions, please do not hesitate to call us.