Whether you rent or own, or live in a condominium, mobile home, or single-family house, there are types of home insurance designed to match your living situation.
HO-1: This bare-bones policy usually covers only your house for 10 “perils,” or problems. It’s not sold in many states and if you have a mortgage, you’re likely required to have a better home insurance policy.
HO-2: This type of home insurance includes coverage for your house and other structures on your property, your belongings, liability insurance, additional living expenses, and medical payments. However, coverage for your house and belongings is only for specific perils, or problems, such as fire.
HO-3: The most common type of home insurance policy, the HO-3 covers your house and other structures, as well as your possessions. It also includes liability insurance, additional living expenses, and medical payments coverage. Unlike an HO-2, it covers damage to your house from all perils unless they are specifically listed as exclusions, such as floods. Your personal property is covered for 16 types of problems, such as theft and fire.
HO-4: Known as renters insurance, an HO-4 covers your belongings, and includes coverage for liability and additional living expenses.
HO-5: This type of policy covers your home and belongings under all circumstances except problems specifically listed as exclusions. An HO-5 policy offers the highest level of protection for houses and belongings.
HO-6: An HO-6 is home insurance for people who live in condominiums. It covers the walls, floors, and ceilings of your unit and what you own that’s in it, and includes coverage for liability, additional living expenses, and medical payments.
HO-7: This policy is similar to an HO-3, but is for mobile homes.
HO-8: An HO-8 is designed for older and historic homes, which usually have a rebuilding cost that’s higher than the market value of the house. It includes coverage for the house and its contents for 10 specific problems.