Different Types of Home Insurance Policies

April 01, 2018


When searching for the right home insurance policy for your house the whole experience can be a bit overwhelming especially because there are so many different types of home insurance covers available. But worry no more. This article will cover the various types of available homeowner insurance policies including what they protect you against.

HO-1 – Basic Form

This type of homeowners insurance is exactly what it sounds like. It’s a basic form of home insurance that provides a cover for the below listed perils:

  • Theft
  • Lightning
  • Fire or Smoke
  • Hail and Windstorms
  • Explosions
  • Damage from aircraft
  • Damage from vehicles
  • Volcanic eruption
  • Riots and civil commotion
  • Vandalism

In some cases, the insurance policy might offer a cover for your personal belongings housed inside your home including the building structure itself. However, items that you want covered by the policy must be specified when purchasing this type of insurance.

Earthquakes and floods aren’t usually covered. Also, personal liability is not included in this insurance cover, that is, if someone gets injured on your property, the HO-1 offers no protection.

HO-2 – Broad Form

This is a more common type of homeowners insurance. In addition to the perils mentioned above for the HO-1 insurance policy, the HO-2 also covers:

  • Weight of snow, sleet, or ice
  • Falling objects
  • Accidental overflow, or discharge of water or steam
  • Sudden and inadvertent damage caused by artificially generated electric current
  • Freezing of household items such as heating or AC

Not only does HO-2 provide a cover for your home’s structure, your belongings are also covered not to mention personal liability. You need to understand though that the HO-2 insurance policy will only cover damages caused by perils mentioned in the policy. Anything else will not be covered.

HO-3 – Special Form

This is the most common type of homeowners insurance because it has general affordability not to mention offers a broad range of coverage. It covers all of the perils mentioned in the broad form policy and then some.

Due to the fact that special form doesn’t just cover the named perils it offers greater coverage than  an HO-2 insurance. This means that using this policy you will be protected from all forms of peril unless they have been specifically excluded in the policy.

The HO-3 policy provides insurance cover for your home as well as attached structures such as a deck or a garage. Also included are your personal belongings as well as personal liability.

HO-4 – Tenant’s Form

This type of insurance is specifically designed for tenants as it only covers personal liability and belongings. The building structure is excluded in this policy as the landlord is expected to insure the building.

Also known as a renters insurance, the HO-4, typically covers extra living expenses in the event you need to live somewhere else as you wait for your apartment to get fixed.

HO-5 – Comprehensive Form

A comprehensive form insurance policy is one that covers the most perils; more than any other type of insurance policy. Just like an HO-3 form, a comprehensive policy will protect you from all types of perils unless specifically excluded in writing. Some of the perils that are excluded include:

  • Intentional loss
  • Flood
  • Earth movement
  • Pets and other animals
  • Mold, rot, and fungus
  • Damage from infestation of birds, insects, rodents, and vermin
  • Neglect
  • Rust, or corrosion etc


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