What are the basic types of standard homeowners insurance plans?

Homeowners insurance is sold in standard packages which are designed for specific purposes. A home owner needs a broader set of insurance policies, for example, than a renters insurance or the owner of a rental property. Each Homeowners insurance package contains a set of policies, such as liability insurance and coverage for personal property that encompass the primary needs of that type of dwelling or real estate.

HO-1
This is the most basic type of coverage available to property owners. It protects against 10 listed perils, but contains no provisions for liability insurance. The covered perils under an HO-1 policy are:

• Aircraft
• Civil Unrest or Riot
• Explosion
• Fire (including Lightning)
• Smoke
• Theft (HO-1 policies typically have a very low personal property limit)
• Vandalism
• Vehicles (belonging to other people than the policy holder)
• Volcanic Eruption
• Wind and Hail Damage

HO-2
This type of policy, sometimes called a broad coverage policy, protects the property against 16 named perils. The personal property limit for an HO-2 policy is typically based on a percentage of the value of the dwelling. In addition to the 10 perils covered in an HO-1, this policy includes protection against:

• Accidental Discharge or Overflow of Water or Stream
• Damage from Artificially Generated Electrical Current
• Falling Objects
• Freezing
• Weight of Ice, Snow, or Sleet
• Sudden Tearing Apart, Cracking, Burning, or Bulging

HO-3
An HO-3 policy includes coverage for all perils except those specifically named in the policy. Like the HO-2 policy, it includes protection for liability, personal property, the dwelling and other structures. Examples of exclusions which are commonly used include earthquakes or other movements of the earth, floods, and government actions.

HO-4
This is the policy designed for tenants and renters. It includes the coverage types of a broad form policy, but does not provide protection for the dwelling or other structures. Liability insurance covers only the actions or property of the renter, the property owner assumes the rest.

HO-5
Sometimes called an elite homeowners package, the HO-5 policy includes all perils except those which are specifically excluded, provides substantial protection for personal property, the dwelling and the other structures. This is the most comprehensive type of home insurance, but it is also the most expensive.

HO-6
This type of policy is intended for condominium owners. It provides the same type of coverage as renters insurance, along with liability coverage for owned portions. HO-6 policies protect against the same 16 perils as a broad form policy.

HO-8
This type of policy is designed for owners of older homes. It includes the same protection against perils as an HO-1 policy, but also provides additional coverage to rebuild or replace older homes with the same materials as they were originally built with. This type of policy is more useful if you spend a little extra to get full replacement coverage.