Homeowner's Insurance

Homeowner's Insurance Forms

There are five types of homeowner's policies where content is mandated by each individual state. While the basic coverage for each type of policy is going to be the same for each company, there are some optional variations between different carriers. Your agent can explain the differences between the various contracts to you. Let's take a look at the five basic types of Homeowners' policies:

  • HO-1: Provides only minimal basic protection. Due to its many restrictions on coverage, it is available in only a handful of states.
  • HO-2: Costs about 10% more than HO-1 but removes many of the restrictions imposed by an HO-1 policy.
  • HO-3: Costs about 25% more than HO-1. As respect to the dwelling, it covers everything not specifically excluded in the policy. Your personal property is insured for 16 specific types of occurrences (called perils).
  • HO-5: Costs more than the HO-3 but covers both your dwelling and personal property for all occurrences except those specifically excluded by the policy.
  • HO-8: Used for unique or historical structures where there is a good supply of similar homes in the local area where you could buy a replacement for a lower cost than rebuilding the damage of a loss.

IMPORTANT NOTE: The Classifications HO-1, 2, 3, etc. are used in policies issued on forms based upon those of the Insurance Service Office (ISO). Other carriers may use forms of their own design not utilizing the ISO "HO" convention of naming. In all cases, coverage is substantially similar due to the mandated forms of protection in each state's version of the form.

There are two additional classifications of coverage for residential insurance other than those of a dwelling owner:

  • HO-4:The "Tenants" or "Renters" policy is used by those individuals who do not own their home but rather rent the residence;
  • HO-6: This form is used by condominium or cooperative unit owners.
Share Article:
Add to GooglePlus

Securities and Investment Advisory Services are offered through LPL Financial, a Registered Investment Advisor, member FINRA/SIPC. Insurance products are offered through LPL Financial or its licensed affiliates. Heartland Planning Associates is a trade name of Heartland Bank. Heartland Bank and Heartland Planning Associates are not a registered broker/dealers and are not affiliated with LPL Financial.  The investment products sold through LPL Financial are not insured Heartland Bank deposits and are not FDIC insured.  These products are not obligations of Heartland Bank and are not endorsed, recommended or guaranteed by Heartland Bank or any other government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.  The LPL Financial representatives associated with this website may discuss and/or transact securities business only with residents of the following state: Ohio. Check the background of investment professionals associated with this site on FINRA's BrokerCheck.

Not Insured by FDIC or Any Other
Government Agency
Not Bank
Guaranteed
Not Bank Deposits or
Obligations
May Lose
Value