Homeowner Policy Types

The Homeowners Insurance Policy is a package policy the combines property and liability coverages into one policy. The Home must be owner occupied (except for the Form HO4). The policy can be customized to fit the homeowners needs by adding endorsements. There are six available polices.

The most common is the Special Form HO3 which provides coverage for the dwelling, detached other structures, personal property, loss of use, personal liability, and medical payments to others.

The Comprehensive Form HO5 is similar to the Special Form HO3 but provides broader insurance coverages for personal property.

The Contents Broad Form HO4 is for someone who rents an apartment or a house. The policy provides insurance coverage for personal property, personal liability, and medical payments to others.

The Unit-Owners Form HO6 is for someone who lives in a townhouse or condominium. The policy provides insurance coverage for the personal property, personal liability and medical payments to others. The unit is usually insured by two insurance policies - the Association Master Plan policy and the Unit Owners HO6 policy. Depending on the Association Master Plan policy, you can add dwelling and loss assessment coverages.

The Broad Form HO2 and Modified Coverage Form HO08 - are usually used for homes that do not fit insurance companies underwriting guidelines for the Special Form 3 and HO5 forms.

The coverages are not as broad. Usually the homes are in below average condition.

By Ann Valley