Homeowners Insurance

Homeowners insurance provides a broad array of personal insurance coverages, for owners of homes, as well as condo owners and renters / tenants. A homeowners is known as a “package” policy, because it includes both protection for your property (your personal items, the house, and any detached buildings), as well as liability (defense and judgment costs if you are sued).

The most common homeowners policy is the HO-3. However, some companies now offer the broader HO-5 on homes that meet specific underwriting standards. For a detailed summary of why the HO-5 is a better value, click to our HO-3 vs. HO-5 page for a list of differences.

The HO-4 is used for renters, and has no building coverage, and the HO-6 is specially designed to address condo owners needs.
Below lists the different kinds of homeowners policies:

Policy form: HO-1
Generally Known As: Basic
Used For: Camps, homes with no interior plumbing, no central heat, etc.
Characterized By: “Basic Perils”: extremely limited coverage (Fire and lightning, with vandalism at an additional cost). Archaic; Used rarely.

Policy Form: HO-2
Generally Known As: Broad
Used For: similar to HO-1, on camps, unimproved old homes
Characterized By: Named Perils on Dwelling and Contents; seldom used except when company requires.

Policy Form: HO-3
Generally Known as: Special
Used For: most commonly purchased home insurance, minimum required by lenders for new home purchases
Characterized by: “Open Perils” on Dwelling (the house); “Named Perils” on Contents (your stuff): Additional coverages may be added by endorsement (such as “replacement cost” treatment, personal injury).

Policy Form: HO-4
Generally Known As: Tenants policy
Used For: Tenants, apartment renters
Characterized By: No coverage for building (that’s the landlord’s responsibility), just Contents and Liability protection.

Policy Form: HO-5
Generally Known As: Special Building and Contents
Used For: newer, preferred homes, offered selectively by a few companies.
Characterized By: Great if it’s available “Open Perils” on Dwelling; “Open Perils” on Contents, replacement cost coverage, higher limits on jewelry, silverware, etc., plus broader liability protection.

Policy Form: HO-6
Generally Known As: Condo Policy
Used For: Condominium owners
Characterized By: Coverage on personal property as with HO-4, but also can include coverage for building (e.g. interior walls, build-outs), and other condo owners’ needs.

And for risk mitigation and insurance solutions, look to www.agordon.com for topical and relevant resources.

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