Types Of Homeowners Insurance Policies
Homeowners insurance policies come in several types, each offering varying levels of protection. These policies are commonly referred to as “forms,” and are labeled HO-1 through HO-8. Central Carolina Insurance Agency provides the same in Huntersville, Concord, NC, Cornelius, NC, Mooresville, Davidson, NC, Kannapolis and surrounding regions.
HO-1 (Basic Form):
This is the most limited form of coverage. It protects against specific perils such as fire, lightning, windstorms, hail, and theft. HO-1 is rarely offered today due to its narrow scope.
HO-2 (Broad Form):
This policy covers more perils than HO-1, including falling objects, the weight of ice or snow, accidental water discharge, and electrical surges. It still lists covered events, so if something isn’t named, it’s not covered.
HO-3 (Special Form):
The most popular policy type, HO-3 offers “open-peril” coverage for the home itself, meaning it covers all perils except those explicitly excluded (like earthquakes or floods). Personal belongings are still covered on a named-peril basis.
HO-4 (Renter’s Insurance):
Designed for tenants, HO-4 covers personal property and liability but not the building structure, which is the landlord’s responsibility.
HO-5 (Comprehensive Form):
An upgraded version of HO-3, this policy provides open-peril coverage for both the dwelling and personal property, with higher limits and fewer exclusions. It’s ideal for high-value homes.
HO-6 (Condo Insurance):
Tailored for condominium owners, this policy covers interior structures (like walls and floors), personal property, and liability. The condo association’s master policy covers the exterior.
HO-7 (Mobile Home Insurance):
Similar to HO-3 but designed for mobile or manufactured homes, this policy covers the structure, contents, and liability.
HO-8 (Older Home Insurance):
Intended for historic or older homes where replacement costs may exceed market value. It covers repairs using common materials instead of like-kind replacements.
Choosing the right policy depends on your property type, location, and coverage needs.
Please reach out with any questions you might have, and we will be happy to help.
