Property

Types of Policies Currently, the ISO (Insurance Services Organization) has seven
standardized homeowners insurance forms in general use: HO1 – Basic Form Homeowner
Policy A basic policy form that provides coverage on a home and its contents (personal
property) against 11 listed perils. The perils include fire or lightning, windstorm or hail,
vandalism or malicious mischief, theft, damage from vehicles, damage from aircraft,
explosion, riot or civil commotion, glass breakage, smoke and volcanic eruption.

HO2 – Broad Form Homeowner Policy A more advanced form that provides dwelling and contents coverage against 17 listed perils, including all 11 on the HO1 plus falling objects, weight of ice, sleet or snow, electrical surge damage and three specific categories of water damage from home utilities or appliances. This is a “named perils” policy, which lists the perils that would be covered.

HO3 – Special Form Homeowner Policy The typical, most common form used for single family homes. This policy provides “open perils” coverage on the home with some perils excluded, such as earthquake and flood. Contents are covered on a named peril basis as in an HO2. “Open Peril” means that if it is not specifically excluded in the policy, it is covered.

HO4 – Renter’s Insurance The “Tenants” form is for renters. It covers personal
property against the same perils as the contents portion of the HO2 or HO3 up to a
specified amount. It also provides the renter liability protection for accidents that may
happen to a third party at the home or caused by the renter within the policy coverage territory.

HO5 – Comprehensive Homeowner Policy This is the best way to protect your
home and its contents and is recommended by most experts. On this policy the contents are covered on an “open peril” basis as well as the dwelling, therefore as long as the cause of loss is not specifically excluded in the policy it will be covered for both dwelling AND contents (personal property). HO6 – Condominium Policy This is the standard form for condominium owners. HO8 – Homeowner’s Modified Form The “Modified Coverage” form is for owner-occupied older homes whose replacement cost far exceeds the property’s market value. It provides for named perils coverage as in an HO2, except repairs and replacements are done on a cash value basis rather than a replacement cost basis