What is HO-8 home insurance? | Insurance.com (2024)

FAQs

What is HO-8 home insurance? | Insurance.com? ›

HO-8 home insurance is a special policy designed for older or historic homes that may not qualify for standard coverage. An HO-8 policy covers your home on an actual cash value basis rather than replacement cost.

Also known as basic form homeowners insurance, the HO-1 provides bare-bones coverage. An HO-1 policy will pay out only if one (or more) of 10 specific perils damages your home: Fire or lightning. Windstorm or hail.

While an HO-8 policy would help pay repair costs following a fire, it wouldn't cover damage caused by your pipes freezing and bursting. Additionally, remember that HO-8 policies only cover you for the actual cash value of your home, so you will not get the full cost to repair or replace damages.

HO-3 policies only cover personal property for named perils. If you want open perils coverage for your belongings, you will need an HO-5 policy. The other key difference between HO-3 and HO-5 policies is how insurance companies calculate claim payouts for your personal property.

Theft coverage under an HO-8 is restricted to: The actual cash value what was stolen, with limits for certain classes of property.

A standard HO-3 policy will typically include some water damage coverage, but usually excludes damage from flooding or sewer backup. An HO-8 policy does not include coverage for water damage, including damage caused by sudden events such as burst pipes.

HO-3 insurance is the most common type of home insurance policy. Standard HO-3 policies provide coverage for your home's structure, contents, liability, medical payments and additional living expenses.

An HO-8 policy contains the same types of coverage as a standard homeowners insurance policy, but it only covers your home and personal belongings at their actual cash value in the event of a loss.

However, an HO-8 policy does not cover other perils that can cause expensive damage, such as: Water damage. Few home insurance policies cover water damage from flood, but HO-8 also excludes damage caused by a burst pipe or other sudden and accidental events.

This coverage is most often used if your home was built 40 years ago or longer, is a historic landmark, or is otherwise architecturally important. As a general rule, if it costs more to repair your damaged home than the home's current market value, an HO-8 policy will likely be your best — and most affordable — option.

Which is better HO3 or ho5? ›

HO-5 — HO-5 policies provide more coverage than both HO-3 or HO-6 policies. HO-6 — This type of coverage only applies to condos and provides a similar amount of coverage to an HO-3 policy. It provides coverage for the inside of your condo, your personal belongings, liability, and additional living expenses.

An HO3 policy is generally recommended for most homeowners, as it provides a higher level of protection and coverage compared to an HO2 policy.

What's the difference between HO3 and HO6? The main difference between an HO3 policy for a single-family home and an HO6 condo insurance policy is that while an HO3 covers the physical structure of your home itself, an HO6 policy only covers what's inside the walls of your condo.

HO-8 is a named perils policy, meaning it only covers against perils that are specifically named in the policy, including fire, theft, and vandalism. HO-8 policies reimburse you at actual cash value rather than replacement cost.

HO-6 insurance is basically homeowners insurance for condo or co-op owners. A typical HO-6 policy covers your belongings, liability, and is designed to cover losses to the structure of your unit that your condo association's master policy won't.

HO5 may pay for both the damage to your dwelling and the furniture inside. Other forms typically won't cover that cause of damage to personal property. They cover more common incidents, like damage caused by windstorms, fire, and theft, etc.

A person or entity that's listed as additional insured also receives coverage under the policy and has the ability to make claims. If you have a mortgage, your lender could be an additional insured. However, in most cases, an additional insured is someone who lives in the home.

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.

Both of these policies cover your personal property, the interior finishes of your unit (walls, flooring, ceilings, etc.), and your liability. The main difference between and HO-6 condo policy and an HO-3 policy is that under an HO-6, the building structure and exterior are not covered.

HO-4 insurance is another term for renters insurance. It covers the policyholder's personal belongings but not the physical structure of the rental home. Most HO-4 policies also include personal liability protection and cover additional living expenses if renters are temporarily displaced from their homes.