What Is an HO-2 Insurance Policy? – Policygenius (2024)

FAQs

What Is an HO-2 Insurance Policy? – Policygenius? ›

HO-2: Broad Form

An HO-2 insurance policy covers homeowners on a named perils basis. This means that your policy will only cover damage to your home, detached structures and personal property caused by a peril that is specifically listed in the policy.

In an HO2 policy, only perils listed in the policy are covered. In an HO3 policy, all perils are covered except for the exclusions listed in the policy. An HO2 is often called a “broad form policy,” whereas an HO3 is often called a “special form policy.”

HO-2 policies will typically cover your home at its replacement cost. Personal property will be covered at its actual cash value.

HO1 Policy – Basic Coverage: This covers an owner-occupied standalone home against 10 named perils. HO2 Policy – Broad Coverage: This can cover the home against 16 named perils. HO3 Policy – Special Coverage: This is the most common type of homeowners insurance.

An HO-2 policy protects against 16 perils, which include fire or lightning; windstorm or hail; explosion; riots; damage from aircraft; damage from vehicles; smoke; vandalism; theft; falling objects; weight of ice, snow or sleet; overflow of water or steam; sudden warping of home systems; freezing of warp systems; ...

With HO2 coverage, your dwelling coverage is written as named perils which means that your home structure is only covered by perils included in your policy. On the flipside, with HO3 coverage, your dwelling coverage is written as open perils which means that unless a peril is specifically excluded, it is covered.

Some common HO3 policy exclusions are:

Earth movement, such as an earthquake, sinkhole, and mudflow. Water damage from flood, sewer backup, or water seeping in through the foundation. Demolition of your home required by law to bring it to code. Seizure or demolition by a government agency or public authority.

A homeowners insurance (HO-3) policy is a coverage plan that covers your home's structure, your personal belongings and liability in the event of damage or injury. Typically, an HO-3 policy will also cover additional living expenses and protection for other structures on your property.

What is the most common homeowners insurance policy? ›

HO-3 (special form)

The most common type of homeowners insurance is the HO-3 policy. HO-3 policies offer more expansive coverage than HO-2s, meaning that your home's structure is safeguarded against all perils except for those specifically excluded (for example, earthquakes and floods) in your policy.

An HO-2 home insurance policy covers only your home and personal property against threats specifically named on the policy's declarations page. An HO-2 policy is often called a named peril policy — the covered threats are specifically listed.

HO-3. The most common type of homeowners insurance is the HO-3 Special Form policy, which covers your home, your personal property, liability, additional living expenses and medical payments.

State Farm is the cheapest home insurance provider in 22% of states and Allstate is the cheapest provider in 18% of states. Use the map below to see which homeowners insurance provider offers the cheapest coverage in your state.

Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.

Section I provides property coverages (A, B, C and D) while Section II provides liability coverages (E and F). A brief description of the individual coverages follows: Coverage A — Dwelling. Coverage B — Other Structures.