Learn the different types of home insurance, including HO-1, HO-2, HO-3, HO-4, HO-5, HO-6, HO-7 and HO-8, coverage, costs and how to choose the right policy.
Types of Home Insurance: HO-1 to HO-8 Explained | Insurance With Maria
What Are the Different Types of Home Insurance?
Choosing the right home insurance policy can be confusing because insurance companies use different policy forms for different types of homes and living situations.
The most common homeowners insurance forms are identified as HO-1 through HO-8. Each type is designed for a particular level of protection or type of property. HO-3 is generally the most common policy for standard single-family homes, while HO-4 is designed for renters, HO-6 for condo owners, and HO-7 for mobile or manufactured homes.
At Insurance With Maria, understanding these differences can help you compare coverage more intelligently before requesting home insurance quotes.
The right policy isn’t necessarily the cheapest one. It should provide appropriate protection for your home, personal belongings, liability exposure and specific risks in your area.
Quick Comparison of Home Insurance Types
| Policy | Best For | Coverage |
|---|---|---|
| HO-1 | Basic homeowners | Limited named-peril coverage |
| HO-2 | Homeowners wanting broader named-peril coverage | Home and belongings |
| HO-3 | Most standard homeowners | Broad dwelling + named-peril personal property |
| HO-4 | Renters | Belongings and liability |
| HO-5 | Higher-value homes | Broad coverage for home and belongings |
| HO-6 | Condo owners | Unit interior, belongings and liability |
| HO-7 | Mobile/manufactured homes | Specialized home coverage |
| HO-8 | Older or historic homes | Modified coverage |
Policy availability and exact coverage can vary by insurer and state, so the policy contract should always be reviewed before purchasing.
1. HO-1 Home Insurance
HO-1 is the most basic form of homeowners insurance.
It provides limited protection against specifically named perils. Because the coverage is relatively narrow, HO-1 policies are rarely offered by insurers today.
Depending on the policy, named perils can include events such as:
- Fire or lightning
- Windstorm or hail
- Explosion
- Theft
- Vandalism
- Smoke
- Aircraft damage
- Vehicle damage
- Riot or civil commotion
- Volcanic eruption
Because HO-1 coverage is limited, homeowners should carefully consider whether it provides enough protection for their financial situation.
For many homeowners, a broader policy such as HO-3 may be more appropriate.
2. HO-2 Home Insurance
HO-2, sometimes called broad form insurance, provides more coverage than HO-1.
Like HO-1, it generally works on a named-peril basis. That means the policy identifies the events that are covered.
If a particular cause of damage is not included in the policy, coverage may not apply.
HO-2 may be suitable for homeowners who want broader protection than a basic policy but don’t need the more comprehensive coverage available through other policy forms.
However, availability varies, and homeowners should compare HO-2 with HO-3 before making a decision.
3. HO-3 Home Insurance
HO-3 is the most common type of homeowners insurance policy for standard single-family homes.
This policy is popular because it provides broad protection for the physical structure of a home.
Generally, the dwelling is covered on an open-peril basis, meaning damage is covered unless the cause is specifically excluded by the policy.
Personal belongings, however, are typically covered on a named-peril basis under an HO-3 policy.
This distinction is extremely important.
For example, your house and your furniture may not necessarily have identical coverage for the same event.
A typical HO-3 policy can include:
- Dwelling coverage
- Other structures coverage
- Personal property coverage
- Loss-of-use coverage
- Personal liability
- Medical payments coverage
HO-3 is often a strong starting point for homeowners comparing home insurance quotes.
4. HO-4 Renters Insurance
HO-4 is commonly known as renters insurance.
Unlike standard homeowners insurance, HO-4 generally does not insure the building itself because the landlord is responsible for the structure.
Instead, renters insurance can protect the tenant’s:
- Personal belongings
- Personal liability
- Additional living expenses following certain covered losses
For example, if a renter’s belongings are damaged by a covered event, renters insurance may help replace eligible possessions according to the policy.
Renters should not assume that their landlord’s insurance covers their personal belongings.
The landlord’s policy generally protects the property owner, not everything owned by the tenant.
5. HO-5 Home Insurance
HO-5 is one of the broadest homeowners insurance forms available.
Like HO-3, it can provide open-peril protection for the home’s structure. However, HO-5 generally provides broader protection for personal property as well.
This can make HO-5 attractive to homeowners with:
- High-value belongings
- Expensive electronics
- Jewelry
- Fine art
- Premium furniture
- Significant personal assets
HO-5 policies can cost more than HO-3 policies because the coverage is broader.
However, price isn’t the only consideration. A homeowner should compare the actual coverage, exclusions, limits and deductibles.
HO-3 vs. HO-5: What’s the Difference?
The biggest difference between HO-3 and HO-5 is generally how personal property is covered.
HO-3: Home structure generally receives open-peril coverage, while personal property generally receives named-peril coverage.
HO-5: Home structure and personal property generally receive broader open-peril coverage, subject to exclusions.
This difference can become important when filing a claim.
If you are comparing HO-3 vs. HO-5 insurance, don’t compare premium alone. Compare the coverage provided for your belongings and the policy exclusions.
6. HO-6 Condo Insurance
If you own a condominium, HO-6 insurance may be the appropriate policy form.
Condo insurance is different from traditional single-family homeowners insurance because the condominium association usually has its own master insurance policy.
Your individual HO-6 policy can protect areas and property that aren’t covered by the association’s policy.
Depending on the policy and association documents, coverage may include:
- Interior portions of the condo
- Personal belongings
- Personal liability
- Additional living expenses
- Improvements and upgrades
- Certain loss-assessment exposures
Before buying condo insurance, review your HOA or condominium association’s master policy.
Understanding what the association covers and what you are personally responsible for can help you select appropriate coverage.
7. HO-7 Mobile Home Insurance
HO-7 is designed for mobile and manufactured homes.
A mobile or manufactured home has different insurance considerations from a conventional site-built house.
HO-7 coverage is generally structured similarly to homeowners insurance but is designed around the unique characteristics of mobile or manufactured housing.
Coverage may include protection for:
- The manufactured home
- Personal property
- Other structures
- Liability
- Additional living expenses
Availability and policy terms can vary, so mobile-home owners should compare policies specifically designed for their property.
8. HO-8 Home Insurance
HO-8 is designed for certain older or historic homes.
Older properties can present unique insurance challenges because the cost of rebuilding them using modern materials or construction methods may be significantly different from the home’s market value.
An HO-8 policy can provide modified coverage for qualifying older homes.
This can be useful when a standard homeowners policy isn’t appropriate for the property’s age, construction or replacement characteristics.
If you own an older home, ask an insurance professional whether HO-3, HO-5, HO-8 or another specialized policy is appropriate.
Named Perils vs. Open Perils
One of the most important concepts when comparing home insurance is understanding named perils and open perils.
Named Perils
A named-peril policy covers losses caused by hazards specifically listed in the policy.
If the cause isn’t listed, the loss may not be covered.
Open Perils
Open-peril coverage generally covers causes of loss unless they are specifically excluded.
This doesn’t mean that absolutely everything is covered.
Exclusions still apply.
Understanding this difference can help you compare insurance policies more accurately.
What Does Home Insurance Usually Cover?
A homeowners policy can contain several different types of coverage.
Dwelling Coverage
This protects the physical structure of the insured home against covered losses.
Other Structures
This can cover qualifying structures that are separate from the main house, such as a detached garage or shed.
Personal Property
This can protect belongings such as clothing, furniture, electronics and other possessions.
Loss of Use
If a covered loss makes your home temporarily uninhabitable, loss-of-use coverage may help with eligible additional living expenses.
Personal Liability
Liability coverage can provide protection when you are legally responsible for certain injuries or property damage.
Medical Payments
Some policies provide limited coverage for medical expenses involving certain injuries to guests.
Exact coverage limits, exclusions and conditions vary by policy.
What Does Home Insurance Usually Not Cover?
A common misconception is that homeowners insurance covers every type of property damage.
It doesn’t.
Standard homeowners policies commonly exclude certain risks, including flooding and earthquakes, although separate policies or endorsements may be available.
Other exclusions may apply to:
- Normal wear and tear
- Poor maintenance
- Certain pest damage
- Certain types of water damage
- Intentional damage
- Some business property
- Specific high-value possessions
- Certain earth movement
Always read the exclusions and endorsements in your policy.
How to Choose the Right Home Insurance
Choosing the right policy starts with understanding your property.
Ask yourself:
What type of property do I own?
A single-family house may require HO-3 or HO-5, while a condo may require HO-6.
Do I rent my home?
If you rent, HO-4 renters insurance may be appropriate.
Is my property a manufactured home?
You may need specialized coverage such as HO-7.
Is my house older?
An older property may qualify for specialized coverage such as HO-8.
How valuable are my belongings?
If you own expensive jewelry, artwork, electronics or collectibles, ask whether standard policy limits are sufficient.
What risks exist in my location?
Flooding, hurricanes, wildfires, earthquakes and severe storms can affect insurance needs.
How to Compare Home Insurance Quotes
When comparing home insurance quotes, don’t choose a policy simply because it has the lowest monthly premium.
Compare:
- Dwelling coverage
- Personal property limits
- Liability limits
- Deductible
- Replacement cost coverage
- Additional living expenses
- Exclusions
- Optional endorsements
- Flood and earthquake options
- Special limits for valuables
Two policies with similar premiums can provide very different protection.
Ways to Save on Home Insurance
You may be able to reduce your homeowners insurance cost by:
- Comparing multiple insurers.
- Asking about home and auto bundling discounts.
- Installing qualifying security systems.
- Maintaining smoke and fire detection equipment.
- Choosing a deductible you can realistically afford.
- Reviewing your coverage every year.
- Updating your insurer after major home improvements.
- Asking about available discounts.
Never reduce essential coverage simply to obtain the lowest possible premium.
The goal should be good value and appropriate protection, not simply the cheapest policy.
Frequently Asked Questions
What is the most common type of home insurance?
HO-3 is generally the most common homeowners insurance policy for standard single-family homes.
What is the difference between HO-3 and HO-5?
Both generally provide broad protection for the home’s structure, but HO-5 generally provides broader open-peril protection for personal belongings than HO-3.
Is HO-4 homeowners insurance?
HO-4 is generally renters insurance rather than insurance for the building itself. It is designed primarily to protect a renter’s belongings and liability.
What type of insurance does a condo owner need?
Condo owners commonly use an HO-6 policy. The exact amount of coverage depends partly on what the condominium association’s master policy covers.
Does homeowners insurance cover flooding?
Standard homeowners insurance generally does not cover flood damage. Separate flood insurance may be necessary.
Does home insurance cover earthquakes?
Earthquake damage is commonly excluded from standard homeowners policies. Separate earthquake coverage may be available depending on your location and insurer.
Can I change my homeowners insurance policy?
In many situations, homeowners can change insurers or modify coverage, but you should make sure there is no gap in coverage, especially when a mortgage lender requires insurance.
Final Thoughts: Which Type of Home Insurance Is Best?
There isn’t one home insurance policy that is perfect for everyone.
For many single-family homeowners, HO-3 is the standard starting point. Homeowners seeking broader personal-property protection may consider HO-5. Renters generally need HO-4, condo owners commonly need HO-6, manufactured-home owners may need HO-7, and owners of certain older properties may need HO-8.
The best way to choose is to compare the coverage, exclusions, deductibles, limits and price.
At Insurance With Maria, the goal is to help homeowners understand their options so they can make more informed insurance decisions.
Before purchasing coverage, review the actual policy documents and consult a licensed insurance professional for advice specific to your state and property.
Insurance With Maria — understand your coverage before you need it.