Is Your Homeowners Insurance Good Enough

7/13/2022 (Permalink)

Homeowners Insurance

HO-1 Covers narrow set of named perils. If not specifically listed in policy text, it is not covered. Belongings & liability typically excluded.

HO-2: Covers the same named perils as 1 along with others including failure of HVAC systems, damage to electrical, & harm caused by falling objects. Might also cover belongings & liability. Coverage is relatively limited.

HO-3: Covers everything an HO-2 does while going much further. HO-3s cover the dwelling, its attached structures, belongings within, & the policyholder’s personal liability. As an open-peril policy, will usually cover anything not excluded in writing. Exclusions include floods and earthquakes.

HO-4: Renter’s ins, this covers the belongings and liability of a tenant but not the dwelling itself, the landlord’s ins would cover that. May also include coverage for additional living expenses.

HO-5: Most wide-ranging form of homeowners ins. It will cover a # of perils on an open-peril basis, often with higher limits than other policy types.

HO-6 (Condo): Similar to comprehensive homeowners ins, except limited to condos. It governs belongings, liability, & some portions of unit structure, the rest would be covered by a homeowners association policy.

HO-7 (Mobile Home): Home insurance policy designed specifically for mobile & manufactured dwellings.

HO-8 (Older Home Form): Similar to an HO-3 but optimized for older homes that may have significant depreciation or be part of a historical registry.