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Different Types of Homeowners Insurance You Can Purchase

different types of home owners insuranceAlthough homeowners insurance isn’t a requirement for every homeowner, it’s something you should really consider getting. With proper insurance coverage, you can recover quickly when a disaster hits your property. However, not all homeowners insurance policies are created the same. When shopping for this type of insurance, you’ll have several types of policies called “forms” to choose from.

It’s important to select the appropriate form to get the best coverage. As such, you should familiarize yourself with the different types of homeowners insurance to fully understand what will and will not be covered by each policy.

For Standalone Home Owners


The HO-1 is the most basic type of homeowners insurance. This policy has limited coverage that protects dwellings from the following perils:

  • Fire damage
  • Lightning
  • Windstorms and hail
  • Explosion
  • Smoke damage
  • Volcanic eruptions
  • Riots and civil commotion
  • Property damage caused by an aircraft
  • Property damage caused by a vehicle
  • Vandalism and malicious mischief
  • Broken glass that’s part of the home (e.g. windows)

This policy will only cover the damages caused by the aforementioned disasters and may not cover personal belongings. The HO-1 form isn’t available in most states.


The HO-2 form specifically covers the same perils as HO-1 but includes coverage for water damage and damage from falling objects. It also covers personal property in the home.


HO-3 is the most common policy homeowners have. This is because it has a broad range of coverage, protecting you from the following perils:

  • Fire or lighting
  • Windstorm or hail
  • Explosion
  • Smoke damage
  • Falling objects
  • Volcanic eruptions
  • Ice, snow, or sleet damage
  • Damage caused by electrical currents in wiring and appliances
  • Damage caused by aircrafts and vehicles
  • Vandalism, malicious mischief, and theft
  • Overflowing or freezing of heating, AC, fire sprinkler, pipes, and other household appliances
  • Cracks, tears, burns in the water heater, AC, or fire sprinkler system
  • Riots and civil disturbances
  • All other perils in your policy (excluding sinkholes, floods, earthquakes, and landslides or mudslides)

However, HO-3 will only cover the damages of personal belongings in the home against the same disasters covered by HO-2.


The HO-5 is identical to HO-3 but covers perils that aren’t specifically listed as an exclusion like earthquakes and floods. Due to the depth of this form, however, it costs more than other policies.


An HO-8 form is designed for older homes and buildings that have replacement costs that exceed the actual cash value of the property. Because of this, HO-8 is often used to protect homes that are more than 40 years old, architecturally significant structures, and registered landmarks.  

For Renters


HO-4 is often referred to as renter’s insurance. In this policy, your personal belongings in a rented dwelling are protected should a disaster arise. The landlord’s insurance will minimally cover the cost of damage done to the rental structure. However, HO-4 doesn’t always include liability protection so it’s in your best interest to purchase liability coverage.

For Condo and Co-Ops Owners


Condo owners and co-op tenants should get an HO-6 form. Although condo associations have insurance to protect the common areas of the building, they aren’t responsible for occupied units. HO-6 is designed to cover the tenant’s room, belongings, liabilities, as well as the additional expenses should the unit become inhabitable due to a disaster.

Mobile Home Policy

The mobile home policy (MHP) is only applicable to mobile homes and any structure attached to them. It covers the same basic perils as HO-1 and can even be upgraded to cover damages caused by disasters in HO-3. However, this policy will only be in effect if the mobile unit is stationary. It won’t cover any damages if the home gets damaged while on the road.

Need homeowners insurance? Contact Low Cost Insurance today. Our company offers comprehensive insurance policies for properties in Houston and Cypress, Texas. Give us a call at 281-612-7178 and our friendly agents will gladly discuss your options with you.