Exploring the 8 Different Types of Homeowners Insurance

Together with partner Keith Signoriello, Ben Cavallo is the principal and co-owner of C&S Insurance, headquartered in Mansfield, Massachusetts.

Homeownership comes with a long list of responsibilities and considerations. One of the most crucial is choosing the right insurance coverage for your home. No two homes are the same, which means that homeowners insurance is just as unique. There are several distinct types of homeowner insurance, each tailored to meet different needs and circumstances. Understanding these variations can empower homeowners like you to make informed decisions about protecting your most valuable asset.

Let’s take a closer look at the eight types of homeowners insurance available and what makes each unique.

1. HO-1 Home Insurance: Basic Form

An HO-1 home insurance policy is the most basic form of homeowners insurance available, offering very limited protection. It covers only the physical structure of your home (including any attached structures), appliances, and additional features (e.g., carpeting) against a short list of named perils. This means that if your home is damaged by an event that isn’t included on the list, you’ll be fully responsible for covering the cost of repairs. Since HO-1 policies lack the level of coverage most people need, they are rarely purchased today.

Covered loss events for this type of home insurance include:

Fire and/or smoke
Lightning
Windstorms and hail
Explosions
Damage sustained from vehicles or aircraft
Theft
Vandalism
Riots or other civil commotion
Volcanic eruptions

What HO-1 Home Insurance Typically Does & Doesn’t Cover

What’s Covered	What Isn’t Covered
Physical dwelling Appliances Additional home features	Unlisted perils Liability protection Personal property Additional living expenses

Things to Consider

Because of its limited scope, HO-1 is rarely offered. If you’re shopping for home insurance, you’ll likely need an HO-2 or HO-3 policy instead to reach the recommended level of coverage.

2. HO-2 Home Insurance: Broad Form

HO-2, also called “broad form” coverage, expands on HO-1 by including a wider range of named perils and protections. While it still only covers specific risks, it’s a much more practical option for homeowners who are looking for basic, affordable coverage.

Covered loss events for this type of home insurance are inclusive of the list for HO-1 with the following additions:

Falling objects
Damage caused by the weight of ice, snow, or sleet
Accidental discharge or overflow of water or steam from within a home
Freezing of pipes, plumbing, heating, or air conditioning systems
Sudden tearing, cracking, burning, or bulging of appliances
Accidental damage sustained from electrical currents

What HO-2 Home Insurance Typically Does & Doesn’t Cover

What’s Covered	What Isn’t Covered
Physical dwelling Personal property Liability coverage (certain policies) Additional living expenses (certain policies)	Unlisted perils Flooding and earthquakes Mold damage Damage caused by pests Intentional damage Damage caused by lack of maintenance Damage caused by pets Mudslides and landslides

Things to Consider

HO-2 policies are more affordable than an HO-3 or HO-5 policy but still leave some gaps in coverage. If you want more comprehensive protection against a wider range of risks, upgrading to HO-3 may be worthwhile.

3. HO-3 Home Insurance: Special Form

As the most common type of home insurance, HO-3 is what most people mean when they talk about home insurance policies. It provides “open peril” coverage for your home’s structure, meaning it protects against all risks except those that are specifically excluded. Personal belongings, however, are usually covered on a named-peril basis under this policy type.

Named perils for personal property often include:

Fire
Windstorms
Accidental water damage
Theft or vandalism
Damage caused by the weight of ice and snow
Explosions
Frozen pipes

What HO-3 Home Insurance Typically Does & Doesn’t Cover

What’s Covered	What Isn’t Covered (exclusions)
Physical dwelling (open-peril) Other structures Personal property (named-peril) Liability protection Additional living expenses	Floods Earthquakes Sinkholes Sewer backup Government intervention Wear and tear Damage caused by lack of maintenance Mold damage Damage caused by pests Pet-related damage

Things to Consider

An HO-3 policy strikes the best balance of affordability and coverage, which is why it’s the most popular option. Consider adding endorsements for high-value items — such as jewelry, art, or electronics — or add-ons like flood or earthquake insurance to close any gaps.

4. HO-4 Home Insurance: Renters Insurance

Since they’re intended for renters, these policies aren’t technically a form of homeowners insurance. Because of this, an HO-4 policy doesn’t cover the residence itself, but instead protects the renter’s personal belongings and liability within the rental unit. Many HO-4 policies also include additional coverage for living expenses, which helps pay for temporary housing and daily costs if your rental becomes uninhabitable due to a covered event.

Covered perils for renters insurance often include:

Fire and/or smoke
Lightning
Windstorms
Theft
Vandalism
Damage from vehicles or aircraft
Explosions
Accidental water damage
Falling objects
Frozen pipes
Riots or other civil commotion
Volcanic eruptions

What HO-4 Home Insurance Typically Does & Doesn’t Cover

What’s Covered	What Isn’t Covered
Personal property (against named perils) Liability protection Additional living expenses	Physical dwelling (this is covered by the landlord’s policy)

Things to Consider

If you’re a renter, always confirm with your landlord whether you’re required to provide proof of renter’s insurance as a condition of tenancy. Also, take inventory of your personal belongings to ensure coverage limits are sufficient.

5. HO-5 Home Insurance: Comprehensive Form

HO-5 offers the most comprehensive coverage available to standard homeowners. In these policies, both the dwelling and personal property are covered on an open-peril basis, meaning nearly all risks are protected unless specifically excluded. This type of policy is ideal for anyone who has a larger-than-average amount of highly valuable belongings since it frequently includes higher coverage limits for personal possessions.

What HO-5 Home Insurance Typically Does & Doesn’t Cover

What’s Covered	What Isn’t Covered (exclusions)
Physical dwelling (open-peril) Personal property (open-peril) Liability protection Additional living expenses	Floods Mold damage Earthquakes Intentional damage Neglect or wear and tear Pest infestation War or government action

Things to Consider

While HO-5 policies come with higher premiums, they offer fewer coverage gaps, making them a good choice if you own a new or high-value home, or are looking for maximum coverage without relying on endorsements. It’s also important to note that not all insurers offer HO-5 policies, so if this is a type of home insurance you’re interested in, it’s always best to check with prospective insurance providers at the beginning of your relationship.

6. HO-6 Home Insurance: Condo Insurance

This type of homeowners insurance is designed for condo owners. Similar to renter’s insurance, HO-6 policies cover personal belongings within the unit and provide liability protection. However, with condo insurance, coverage also extends to the unit’s walls, floors, and ceilings. The structure of the overall complex in addition to common areas (e.g., laundry rooms, pools, or social gathering spaces) are protected by the condo association’s master policy and usually subsidized in part by HOA fees.

Like many other types of homeowners insurance, condo insurance is a type of named peril policy and frequently cover the following events:

Fire and/or smoke
Theft
Vandalism
Accidental water damage
Explosions
Falling objects
Lightning
Windstorms and hail
Frozen pipes
Riots or other civil commotion
Damage sustained from vehicles or aircraft
Damage caused by the weight of ice, snow, or sleet
Volcanic eruptions

What HO-6 Home Insurance Typically Does & Doesn’t Cover

What’s Covered	What Isn’t Covered
Interior structure of the condo Personal property Liability protection Additional living expenses	The building’s exterior Shared or common areas

Things to Consider

If you’re a condo owner, always review your condo association’s master policy before purchasing your own condo insurance. Knowing whether it’s “walls-in” (includes flooring, cabinets, plumbing, and electrical fixtures) or “bare walls” (includes only the structure of your unit, up to and including the drywall) will determine how much coverage you need inside your unit.

7. HO-7: Mobile Home Insurance

While similar in structure to HO-3 policies, this type of homeowner insurance is tailored specifically to mobile and manufactured homes, encompassing trailers, sectional and modular homes, and RVs. Like an HO-3, HO-7s offer open-peril coverage for dwellings and named-peril coverage for personal property.

Under an HO-7, your personal property is protected against events including:

Damage sustained from vehicles or aircraft
Fire and/or smoke
Lightning
Theft
Vandalism
Explosions
Windstorms and hail
Riots or other civil commotion
Accidental water damage

What HO-7 Home Insurance Typically Does & Doesn’t Cover

What’s Covered	What Isn’t Covered
Mobile/manufactured home structure Personal property Liability protection Additional living expenses	Flooding Wear and tear Damage during transport of the home

Things to Consider

If your mobile home is frequently moved, you may need to purchase additional coverage for transportation. Location of the home (e.g., in tornado-prone or flood zones) can also heavily influence your premium costs.

8. HO-8: Older Home Insurance

HO-8 policies are built for older or historic homes where replacement costs may exceed the home’s market value. This means that instead of replacement costs, these policies typically pay out the actual cash value (ACV) of the home.

HO-8 home insurance is considered a type of named-perils policy (for both the structure and your personal belongings). Covered events include:

Damage sustained from vehicles or aircraft
Fire and/or smoke
Lightning
Theft
Vandalism
Explosions
Windstorms and hail
Riots or other civil commotion
Volcanic eruption
Falling objects

What HO-8 Home Insurance Typically Does & Doesn’t Cover

What’s Covered	What Isn’t Covered
Physical dwelling (on an ACV basis) Personal property Liability protections Medical payments	Full replacement cost Floods Earthquakes

Things to Consider

HO-8 is best for homes that would be prohibitively expensive to rebuild using original materials, which makes it ideal if you own a historically significant home. Owners of this type of property may need additional riders or endorsements for valuable features such as antique woodwork, plaster, or stone.

Choosing the Right Type of Home Insurance for You

Selecting the right type of homeowners insurance policy involves considering factors such as the value of your home, location, personal belongings, and specific risks you may face. It’s essential to review the coverage limits, exclusions, deductibles, and additional endorsements that can customize your policy to suit your needs.

When weighing your options, keeping the following in mind is a good place to start:

If you want only the bare minimum coverage, an HO-1 policy may work, though it’s rarely offered today and often leaves major gaps in protection.
If you’re looking for affordable, basic protection, an HO-2 policy is a step up, covering a broader list of named perils while keeping costs lower.
If you own a single-family home and want balanced, reliable coverage, an HO-3 policy is usually the best fit, which is why it’s the most commonly chosen option.
If you rent your home instead, an HO-4 (renter’s insurance) policy is designed for your needs, protecting your belongings and liability without covering the structure.
If you have a newer, or higher-value home and want maximum peace of mind, an HO-5 policy is ideal, thanks to its comprehensive open-peril coverage.
If you own a condo, an HO-6 policy is what you need, covering the interior of your unit and your personal property while the association’s master policy handles the exterior.
If you live in a mobile or manufactured home, an HO-7 policy provides the same protections as HO-3 but is customized for mobile home structures.
If you own an older or historic property, an HO-8 policy may be the right fit, since it takes into account unique materials and cash value replacement instead of full rebuilds.

Consulting with an experienced insurance agent can provide valuable guidance in navigating the complexities of homeowners insurance and ensuring you have adequate coverage for your unique living situation. Remember, the cost of insurance is a small price to pay for the peace of mind that comes with knowing your home and possessions are protected against unexpected events.