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8 primary types of homeowners insurance for 2020 explained!



When trying to secure your families' financial future, it is important to work out the type of home insurance policy you need.

And here's the thing:

There are several types of home insurance policies.

  Types of Homeowners Insurance

Understanding how each one works can help you get the best coverage for the lowest rates.

In this post today I will go through all the different types of homeowners insurance, how they work, what they cover and which option works best for each type of home.

The different types of home insurance plans include:

Types of homeowner insurance plans

Damage to the structure of your home caused by 10 named hazards

Hazard + Personal Property

Damage to the structure of your home and your personal property caused by 16 named hazards

Risk + Personal Property + Liability + ALE

Damage to the structure of your home and personal property caused by open hazards, lawsuits against you and the costs of temporary relocation

Personal Property + Liability + ALE

Damage to the structure of your home and personal property caused by open dangers, lawsuits against you and the costs of temporary relocation

Danger + personal property + liability + ALE [19659018] Damage to the structure of your home and your personal property caused by open hazards, protection against liability proceedings and the costs of temporary relocation

Hazards + personal property + liability + ALE

Damage to certain parts of your home and personal property caused by 16 named hazards, lawsuits against you and the costs of temporary relocation

Hazards + personal property + liability + ALE

Damage to the structure of your motorhome and your personal property caused by 16 named hazards, lawsuits against you and the costs of temporary relocation

Owners of old or historic / landmark homes

Risk + Personal property + Liability + ALE

Damage to the structure of your home and your personal property caused by 16 named hazards, lawsuits against you and the costs of temporary relocation

Home insurance made it easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But we're here if you need us.

Uncharted, expert advice.

Get objective insurance training from licensed experts and also avoid dumgy sales calls.

Coverage in minutes.

You can get home insurance coverage within minutes of receiving your quotes and application.

HO1: Basic form

Your basic form of home insurance is super simple, it only covers what is stated in your policy.

These types of insurances are known as "named hazards" policies which simply means that if the type of hazard is not named, it is not covered.

Unfortunately, this policy covers only 10 hazards which are:

  different types of home insurance
  • Theft
  • Lightning
  • vandalism
  • Explosions
  • Fire or smoke [19659043] Volcanic eruptions
  • Hail and windstorms
  • Damage from aircraft
  • Damage from vehicles
  • Rebellion and civil uprising

While this ma y seems like a reasonable amount of things to cover, politics is much more limited in the fact that it also does not cover personal property or personal liability insurance.

Fortunately for us, most states and insurance companies no longer offer this type of policy.

Companies discovered that the monthly premiums for a more comprehensive policy were too close to the price of a basic HO1 policy.

HO2: Broad Form

Think of the broad form as an upgrade to the principle form, it will cover all dangers in your HO-1 policy and:

  • Falling objects
  • Weight of ice, snow or sled [19659055] Freezing of household systems such as AC or heat
  • Accidental release or overflow of water or electricity
  • Sudden and unintentional damage from an artificially generated electric current
  • Sudden and unintentional tearing, cracking, burning or bulging of pipes and other pipe systems

HO-1 basic form policy, the HO-2 policy is a "named hazards" policy, and any losses caused by an event not listed in the policy are not covered.

The broad policy will usually cover the structure and your personal property.

While a broad-based policy gives you more coverage than a basic form-based policy, it still limits you to things that are covered.

HO3: Special form [19659053] HO-3 or the special form is the most common type of homeowners insurance.

It is used the most because it has a large coverage area and some of the most affordable premiums.

IT covers all hazards mentioned in the HO-1 and HO-2 policies and then goes even further.

The HO-3 policy is actually known as an "open danger" policy because as long as a danger is not excluded it is covered.

The special form policy usually covers your home and attached structures, your personal property and personal responsibilities.

Remember; however, this policy will not cover earthquakes or floods, you need a separate policy for that. Common exceptions that you should expect to see in an open risk policy are:

  • War
  • Neglect
  • Collapse [19659074] Power outages
  • Water damage
  • Nuclear hazard
  • Intentional loss [19659075] Earth movement
  • Legal regulation
  • Government measures
  • Mechanical division
  • Smog, rust and corrosion [19659083] Mold, fungus or wet rot
  • Wear, deterioration
  • Birds, pests, rodents81, rodents81 ] Vandalism or harmful damage
  • Smoke from agricultural mud
  • Theft to a dwelling under construction [19659085] Settlement, shrinkage, bulging or expansion
  • Emissions, spread, emissions of pollutants

The HO3 principles usually include the main the core coverage which includes:

Housing, Other structures, Personal property Loss of use, Personal liability and medical payments to others

You must look at your sp specific policy to confirm which coverage is included as they will differ in benefits.

HO-3 vs. HOB

When you applied for homeowners insurance online you may have come across something called a HOB policy.

These policies are almost identical to HO-3.

However, a HOB shape usually provides more coverage against water damage in US coastal areas.

A HOB policy can also cover things like garden tractors, boat and boat carts, lawn mowers and other similar accessories while they are on your property.

HO4: Tenant & # 39 ;s Form

The HO-4 policy will be the easiest to remember as it is actually rental insurance.

This policy was created to protect tenants' personal property and their personal responsibilities and some of them cover loss of use.

Loss of use is if you can not stay in your rental because it is uninhabitable, the insurance c Ompany will pay for your accommodation and food.

Your property is covered by the same hazards in a HO-2-wide form for homeowners.

This type of policy is specific to tenants, as it only covers property and personal liability – not the building structure, which should be covered by the landlord's insurance .

Affiliation is usually covered against the same dangers as a HO-2 insurance policy for broad homeowners.

Home Insurance made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But we're here if you need us.

Uncharted, expert advice.

Get objective insurance training from licensed experts and also avoid dumgy sales calls.

Coverage in minutes.

You can get home insurance coverage within minutes of receiving your quotes and application.

HO5: Comprehensive Form

A comprehensive form policy will be the most expensive of all home insurance policies.

But it will also have the most comprehensive available options.

It will cover more dangers than other policies and is also an "open danger" policy.

Although they are similar to a HO3 policy, they have some main differences:

Compensation cost value

A HO5 policy replaces your home and personal property at a compensation cost value.

This means that the policy covers what it would cost to actually replace the item, not the actual value of the item.

For example:

If you buy a laptop for $ 2000 and after 5 years it is destroyed with a covered loss.

The current value will definitely not be $ 2000; however, the insurance policy will pay out what it would cost to completely replace the same item, not its present value.

Total Open Peril

HO3 policies are open dangers to homes and are called personal property hazards.

The HO5 policy is an open risk for both housing and personal property.

Expanded Limits

The HO5 policy has increased the limits for losses and damage to items such as jewelry, fur and electronics.

The HO5 policy is usually for newer homes in a low-risk, high-value area relative to the rest of the state.

HO6: Condo Form

This policy will be for an apartment owner and it will cover your personal property and personal responsibilities when you live in an apartment.

It will protect the walls, floors and ceilings of your apartment as well.

But just like rent insurance, it does not cover the actual structure of the unit nor will your homeowners associations cover your personal items.

If you own an apartment, you should get some apartment insurance quotes and get covered.

HO7: Mobile Home Form

For motorhomes and recreational vehicles, you will need a mobile home form.

It is basically the same as a HO-3 Policy, but it is designed specifically for motorhomes or manufactured houses.

Some of the types of motorhomes covered by the HO-7 policy include:

  • Modular homes
  • Sectional homes
  • Park model homes and caravans
  • Trailers, caravans, five-wheeled trailers [19659143] Single and wide single wide motorhomes
  • Double-width manufactured and double-wide motorhomes

HO8: Older Home Form

A HO-8 policy is created for coverage for older homes.

The older home form is basically the same as the HO-3 policy but with some adaptations for older homes.

This coverage can be found on historic homes and registered landmarks.

Usually it is for home coverage that is:

  • Over 40 years old
  • Does not meet all structural and cosmetic update requirements

If you have an older home you usually need to make updates of: [19659147] HVAC

  • Electrical
  • Plumbing
  • And roof to qualify for a HO3 policy.
  • The HO-8 plan is also a designated flight plan and only pays out at actual cash value (ACV) – compensation cost minus depreciation.

    Take Action

    Hopefully you can see that homeowners insurance is for your house, apartment, condo, RV, small home (yes it's one thing), historic homes and landmarks.

    It's even for the apartment you rent and even properties you rent to someone else.

    Now that you understand the different types of homeowners insurance it's time to cover.

    Click here or the link above to get a quick quote and get covered.


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