Forms of Homeowners Insurance
The insurance industry uses the word "form" to describe the different types of insurance policies that they sell.
Please do not confuse the "form" with a paper application.
Basic Form (HO1)
This protects your home and your personal property, such as furniture, carpeting, personal effects, etc. The hazards covered are fire, lightning, windstorm, hail, explosion, vandalism (or malicious mischief), damage by vehicles, aircraft and riots. Form HO1 provides only basic insurance, covering your home against only those hazards that are listed that could cause serious financial hardship. Flood, earthquake and landslide is excluded.
Home Owners Policy Form (HO2) Download PDF with more information
In addition to the benefits of HO1, the HO2 also insures a home and personal property for collapse or damage from the weight of ice and snow, falling trees, and other objects, and (under certain conditions other than flooding) from steam or water damage. The HO2 form also covers some kinds of damage covered by faulty electrical equipment. The HO2 is sometimes referred to as the broad form, but it provides less coverage than the HO3. Flood, earthquake and landslide is excluded.
Special Form (HO3) Download PDF with more information
This covers your home against substantially "all types of losses" that can happen except for some specified exclusions. The exception includes flood, surface water, sewer backup, tidal wave, earthquake, landslide, war and nuclear radiation. However, the HO3 form covers your personal property only for the same hazards as are covered by the HO2 home owners policy. Flood, earthquake and landslide is excluded.
Renters Form (HO4) Download PDF with more information
This is the packaged coverage for renters. It protects personal property against the same hazards as the HO2. Flood, earthquake and landslide is excluded.
Condominium Form (HO6) Download PDF with more information
Some insurance companies offer the Condominium Coverage (HO6) to condominium unit owners. In addition to the usual coverage's provided under the HO4, it offers special protection needed by owners of condominium units.
Every policy, except the renters (HO4) and condominium (HO6) forms, provide the following six kinds of coverage.
Renters Form (HO4) includes coverage's C through F below.
Condominium Form (HO6) has special coverage's needed for the condominium owners like common wall coverage.
Coverage A | Damage to House
Covers damage to the house. The face amount of the policy (for example $50,000) is the most you'll receive if your house is totally destroyed.
Coverage B | Other Structures
Covers damage to other structures or buildings, such as a detached garage, work shed, or fencing.
Coverage C | Personal Property
Coverage C insures for damage to, or loss of. personal property. Personal property includes household contents and other personal belongings used, owned or worn by you and your family. See section on extras for personal property that may need added coverage.
Coverage C also provides coverage (an additional 10% of the Coverage C limit) for property other than your primary residence. This could include, but is not limited to; a lake cabin, property stored away from your residence or personal property at your office. Please remember, your deductible applies to all property losses.
Coverage D | Additional Living Expense
Coverage D is for additional living expenses when incurred. This means that the policy covers the necessary living expenses up to the stated limit, incurred by the insured to continue, as nearly as possible, the normal standard of living when the house cannot be occupied due to a covered loss.
Coverage E | Comprehensive Personal Liability
This coverage is for comprehensive personal liability. It protects you against claims arising from accidents to others on property that you own or rent. With a few exceptions, such as auto or boating accidents, it is an all purpose liability policy which follows you wherever you go. This coverage does not cover you for liability arising out of the operation of a business in your home. Some companies will add liability for incidental business exposures. Check with your agent if you need coverage for a business operation.
Coverage F | Medical Expense
Coverage F is for medical expenses. Coverage is limited to an amount per person and per accident for injuries occurring on your premises to persons other than an insured, or elsewhere, if caused by you, a member of your family, or your pets. An important feature of this coverage is that payment is made regardless of legal liability.
Dwelling 3 (Download PDF with more information)
This policy is designed for preferred owner or tenant-occupied one-to-four family residential buildings. Please note that on a Dwelling 3 there is NO LIABILITY!
This policy provides coverage for loss to the building and contents caused by:
All forms are subject to the Insurance Company's final approval.