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Types of Homeowners Insurance Policies

There are several types of homeowners insurance policies, each with a different amount of insurance coverage. The various types are fairly standard across the country. Individual states and companies, on the other hand, may offer policies that are slightly different or go by different names, such as “standard” or “deluxe.” Renters have their own policies in the homes they live in.

Various Types of Homeowners Insurance Policies

HO-3: The most common policy, it covers the home against all perils except those specifically excluded.

HO-1: Policy of limited coverage

This “bare bones” policy covers only the first ten disasters. It is no longer available in the majority of states.

HO-2: Fundamental policy

A basic policy covers you against all 16 disasters. HO-2 is available in a mobile home version.

HO-8: An older house

This policy is intended for older homes and typically reimburses for damage on an actual cash value basis, which means replacement cost less depreciation. Some older homes may not be eligible for full replacement cost policies.

HO4: Tenant

This policy, designed specifically for people who rent their homes, protects personal belongings and any parts of the apartment that the policyholder owns, such as newly installed kitchen cabinets, against all 16 disasters.

H0-6: Condominium/Co-op

A policy for people who own a condo or co-op that covers their belongings as well as the structural parts of the building. It provides protection against all 16 disasters.

What Kinds of Disasters Are covered?

Most homeowner policies cover the following 16 disasters. Some “basic” policies only cover the first ten:

1. Lightning or fire
2. A windstorm or hailstorm
3. An explosion
4. Riot or civil unrest
5. Aircraft-caused damage
6. Vehicle-related damage
7. Smoke
8. Vandalism or intentional mischief
9. Theft
10. Volcanic eruptive activity
11. Falling object
12. Ice, snow, or sleet weight
13. An unintentional discharge or overflow of water or steam from a plumbing, heating, air conditioning, or automatic fire-fighting sprinkler system, or from a household appliance.
14. Unintentional and sudden tearing apart, cracking, burning, or bulging of a steam or hot water heating system, air conditioning, or automatic fire protection system.
15. Freezing of a plumbing, heating, air conditioning, or automatic fire sprinkler system, as well as a household appliance.
16. Damage caused by artificially generated electrical current that occurs suddenly and unintentionally (does not include loss to a tube, transistor or similar electronic component)