Here’s a rundown of the eight different types of homeowners insurance policies you can choose from based on your home and coverage needs.
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, which is why many states no longer offer HO-1 policies. [1]
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
HO-2 policies also offer protection from six additional named perils:
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
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 endorsement to your policy for a small fee.
When it comes to perils, 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:
Excluded perils
HO-3 policies don't cover:
Learn more >> HO-3 insurance guide
HO-4: Contents Broad Form
Better known as renters insurance, 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 check with your insurance provider to be sure.
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 like Chubb or AIG, you’re likely getting HO-5 coverage.
While HO-5 home insurance is very similar to HO-3 policies, there are some notable differences.
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
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 belongings 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
HO-7: Mobile Home Form
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
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. 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.
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
