Homeowners Insurance

Homeowners insurance provides a broad array of coverages, for owners of homes, plus condo owners and renters / tenants.  A homeowners is known as a "package" policy, because it includes both protection for your property (your personal items, the house, and any detached buildings), as well as liability (defense and judgment costs if you are sued).

The most common homeowners policy is the HO-3. However, some companies now offer the broader HO-5 on homes that meet specific underwriting standards. For a detailed summary of why the HO-5 is a better value, click to our HO-3 vs. HO-5 page for a list of differences.

The chart below lists the different kinds of homeowners policies:

OR Click Here For an Informational Homeowners Insurance Video

Policy form Generally  known as Used for Characterized by
HO-1 Basic Form Camps, homes with  no interior plumbing, no central heat, etc. "Basic Perils": extremely limited coverage (Fire and lightning, with vandalism at an additional cost).  No longer used except on rare occasions.
HO-2 Broad Form Similar to HO-1, on camps, unimproved old homes Named Perils on Dwelling and Contents; not commonly used.
HO-3 Special Form Most commonly purchased home insurance, minimum required by lenders for new home purchase "Open Perils" on Dwelling (the house); "Named Perils" on Contents (your stuff):   Many additional coverages may be added by endorsement (such as "replacement cost" treatment, personal injury, and others).
HO-4 Tenants policy Tenants, apartment dwellers No coverage for building (that's the landlord's responsibility), just Contents and Liability protection.
HO-5 Special Form Newer, preferred homes, offered selectively by a few companies. Great if  it's available "Open Perils" on Dwelling; "Open Perils" on Contents,   replacement cost coverage, higher limits on jewelry, silverware, etc., plus broader liability protection.
HO-6 Condo policy Condominium owners Coverage on personal property as with HO-4, but also can include coverage for building (e.g. interior walls, build-outs), and other condo owners' needs.

A typical homeowners policy (HO-3 and HO-5) has the following coverage structure included automatically: (This illustration assumes a house that would cost $200,000 to build new.)

Coverage Insures your: General description Example (on a $200,000 home policy)
Coverage A Dwelling / House This is the limit of insurance on the actual dwelling.  Not applicable for tenants (HO-4) $200,000
Coverage B Other Structures For sheds, barns, detached garages, in-ground swimming pools, etc. $20,000 (usually 10% of coverage A amount)
Coverage C Personal Property Property not part of the structure: e.g. furniture, clothes, appliances, etc $100,000 (usually 50%, occasionally 70% of Coverage A amount)
Coverage D Loss of Use For your living expeses over and above your normal living expenses, if you home is made uninhabitable (by insured loss such as a fire). $40,000 (usually 20% of coverage A amount)
Coverage E Personal Liability If you get sued, bodily injury & property damage, non-auto related. $500,000 common, but limits of $100,000, $300,000 and $1,000,000 also available
Coverage F Medical Payments Payable to injured guest, without regard to your liability or negligence. $1,000 common, but higher limits (2,000 - 5,000 ) are also available

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