Your home insurance agent is committed to finding the best policy that fits your needs. You might hear them mention different policies, featuring their technical titles like HO-3 and HO-5. Here’s more information about what these terms mean and what type of incidents they cover.

A Guide to the Different Types of Home Insurance

1. HO-1

HO-1 is the most basic type of home insurance policy, as it covers the least number of “perils,” or incidents that might result in a claim. It typically covers about 10 different perils, including events like fire, lightning, theft, windstorms, hail, vehicles, and smoke. It may not cover belongings inside your home in the case of theft or damage. Many insurance companies no longer offer these policies since they’re quite restrictive on what they cover, and it’s often not the best insurance value.

2. HO-3

home insuranceThis home insurance offers a broader range of coverage than HO-1 policies and is sometimes called an extended policy. In addition to the items covered in HO-1 insurance, HO-3 home insurance also covers most perils. Some perils that might be left off include earthquakes, landslides, floods, or nuclear accidents. This type of policy will cover the belongings in your home up to the limits outlined in the policy.

3. HO-5

HO-5 coverage is an upgrade from HO-3 coverage, and it covers more perils. It’s called a comprehensive form, which means that it will cover everything except for items that are specifically excluded. Some commonly excluded items include mold, war, rust, animals, pollution, and water damage. Check with your home insurance agent to see what is covered in your HO-5 plan.

4. HO-8

This type of insurance policy is used for older or historic homes, and it covers around 10 perils. What’s unique about HO-8 forms of coverage is that the damages paid out to homeowners are in the actual cash value, meaning that the insurance company will pay for the cost of the damages minus the depreciation value.

The actual cash value will be much lower than the replacement cost, but the trade-off is that the policy is more affordable. Homes generally need to be at least 40 years old to qualify for this policy form. 


If you’re ready to choose between home insurance policies, call Tim Bryan Insurance, located in Andalusia, AL. Tim Bryan is a State Farm® agent who has the knowledge and expertise to help you explore your insurance options, and he works with health, life, auto, property, and homeowners insurance. Visit his website or call (334) 222-1460 to schedule an appointment at a time that fits your schedule.