This depends on what type of insurance you are talking about. Health and life insurance policies do not have any type of standard packages, for example, and auto insurance packages are generally related to the state minimums where they are offered and the individual insurance company underwriting the policy. Home insurance, however, has a specific set of packages to cover a variety of homeowner or renter need.
Homeowner's insurance is for the owner of a home, renters within the home, or condominium and timeshare owners. It protects the home and attached buildings for the homeowner, including any personal property if the homeowner lives in the home. For renters and condo owners, the insurance is used to protect against the damage or loss of personal property, such jewelry or lawn mowers. For those who own older homes, there is a package available to provide insurance coverage that is affordable and negates the obligation of exact replacement of the dwelling for insurance companies, generally as it applies to the materials involved.
- HO-1 is the most basic home insurance package, and only insures the home against fire related damages or those caused by lightning strikes.
- HO-2 is sometimes called Broad Coverage and insures against a wide range of calamities including building collapse, water damage, falling objects and vandalism.
- HO-3 is called Special Form Coverage and protects the property against everything that is not specifically excluded in the policy.
- HO-4 is tenant's insurance and protects the contents of the property. Protection extends to the same incidents covered by an HO-2 plan, only for renters.
- HO-6 is similar to tenant's insurance and protects the property of the dwelling along with providing liability coverage to the policyholder.
- HO-8 is designed for older homes that may not be insurable under a standard replacement policy. It covers rebuilding the home, but not with the original materials.