Types of Home Insurance

Before the 1950's, homeowners had to purchase separate polices to protect themselves against things such as fire, theft, etc. But during the 1950's this changed, and homeowners had the ability to instead purchase one policy that covered all of this. Even then, this was difficult because every insurance company had there own way of doing things. But then in 1971, Insurance Services Office was established to standardize the industry.

There are several types of standard homeowner's insurance policies at this time. They are as follows.

HO-1

This is a limited type of homeowner's insurance policy that offers different levels of coverage, but only for specific items that are detailed in the policy.

HO-2

This is quite similar to HO-1, but is a limited policy that covers only specific parts of a property against damage. With an HO-2 policy, coverage is a "named peril' policy. This lists events that would be covered.

HO-3

This is the most common type of homeowner's insurance policy. It is for homeowners and is designed to cover the home, its structure, and the contents that are inside. Liabilities that may arise as well as any visitors who could incur injury on the property are also included. This type of coverage is usually referred to as "all risk."

HO-4

This type of policy is often times referred to as renter's coverage or renters insurance; it is very similar to HO-6. These policies cover apartments and the contents that are not covered in the policy held by the complex owner. This type of insurance policy can also cover liabilities from accident or injury to guests.

HO-5

This policy is similar to HO-3. It is used for home coverage, not for a condo or an apartment. An HO-5 homeowner's insurance policy also offers coverage of possessions and liability among visitors and passer bys. It differs from an HO-3 policy in the way that it covers a wider range of losses.

HO-6

This type of policy is known as condominium coverage, and is designed for those people who live in a condo; not a home or apartment. This includes coverage for the part of the building owned by the policy holder, and for the property located inside. An HO-6 policy is designed to more or less bridge the gap between the items of the insured and what may be covered by the homeowner's association. Liability coverage can cover accidents that occur up to 150 feet from the carrier's property.

HO-8

Many people refer to HO-8 coverage as "old home' insurance. This allows owners with higher replacement costs than market value to buy insurance at a lower market value rate.