Standard Homeowners Insurance Guide

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Sep 24, 2020

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It is of utmost importance that you choose the right insurance coverage policy to meet your needs from among the several types of homeowners insurance on the market. The majority of homeowners insurance coverage offer protection against 16 common situations including theft, vandalism, fire or lightning, wind or hail, riots, vehicle damage, and other potential hazards. The details of the precise items that are protected turns out to be more important than the actual variation in what is covered.

There are 6 basic home insurance policies available:

  • HO-1

    This coverage is no longer available in the majority of states. This is a basic homeowner policy which offers protection against 10 of the 16 most common hazards, including your home and the belongings inside the home. HO-2 has replaced this type of policy, for the most part.

  • HO-2

    This type of coverage is much broader in scope than HO-1; all 16 of the most common hazards are covered. Your house, additional buildings on the property and all of the insured party’s property are protected; as long as a precise inventory of the property has been provided for verification purposes.

  • HO-3

    The HO-3 policy is very similar to HO-2, with the exception being that the 16 common hazards are not included. What is not covered varies from state to state, between companies and also by what coverage options the policyholder has selected.

  • HO-4

    This type of insurance is standard rental insurance. The policy does not cover the building or residence of the insured party, although it does offer coverage against the 16 common hazard coverage against loss or destruction to all of the insured’s property that is in the actual building. These policies provide security and piece of mind to the policyholder in that it they will be able to replace their lost property if the building that they are residing in is destroyed or damaged.

  • HO-6

    The HO-6 policy is specifically designed for condominium and co-op property owners. These policies combine the typical renters insurance coverage and also includes outbuildings or any additions to the property that the policyholder had constructed privately. The majority of cases call for the owner of the building to be responsible for insuring the structure itself.

  • HO-8

    These types of policy are created for residents of older houses, in which replacement or repair costs exceed the value that the house was insured for. HO-8 policies are comparable to HO-2 except for the fact that the value is restricted to repair or cash value settlements, since the cost of replacement parts exceed the budgetary limits of the policy.

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