What Are the Different Types of Homeowners Insurance Policies?
Homeowners insurance policies come in various forms, each offering different levels of protection. Understanding the types of policies available helps you choose the right coverage for your needs and circumstances.
HO-1, HO-2, and HO-3 Policies: Basic to Comprehensive Coverage
The most common types of homeowners insurance policies are HO-1, HO-2, and HO-3. Each offers a different level of coverage depending on the policyholder’s needs.
An HO-1 policy is a basic form of coverage that offers protection for your home and personal property against a limited number of risks, such as fire, theft, and vandalism. This type of policy typically covers only specific perils listed in the policy, meaning it doesn’t offer the most comprehensive protection.
HO-2 policies, also known as broad form coverage, provide a broader range of protections compared to an HO-1. These policies cover a wider variety of perils and include additional coverage for certain risks, such as falling objects or damage from the weight of snow and ice.
The most common policy is the HO-3, or special form, which provides comprehensive coverage for your home and personal property. HO-3 policies cover your home for all perils unless specifically excluded, such as flood or earthquake damage. Personal property coverage is typically limited to the perils listed in the policy. Statewide Insurance Group offers various homeowners policies tailored to your specific needs, ensuring you get the most comprehensive protection available.
HO-4, HO-5, and HO-6: Coverage for Renters, High-Value Homes, and Condos
In addition to HO-1 through HO-3 policies, there are HO-4, HO-5, and HO-6 policies designed for renters, high-value homes, and condo owners.
HO-4 is a renters insurance policy, designed to protect the personal property of tenants. Since renters don’t own the structure of the building, this policy typically covers only personal belongings, liability, and additional living expenses if the rented property becomes uninhabitable due to a covered event. Renters insurance is an affordable way for tenants to safeguard their possessions and liability risks.
HO-5 policies provide the most extensive coverage available for homeowners with high-value properties. These policies offer protection for both the structure of your home and personal property on an open-perils basis, meaning all risks are covered except those explicitly excluded. This policy is ideal for homes with unique or high-value assets.
Finally, HO-6 is specifically for condominium owners. It covers personal property and provides liability protection but generally does not cover the building itself, as this is the responsibility of the condo association. Statewide Insurance Group offers various homeowners policies, ensuring you find the right coverage for your living situation, whether you own a condo, rent, or have a high-value property.