HO-1 to HO-6: Understanding the Different Types of Homeowners Insurance Policies

When shopping for homeowners insurance, you may come across different policy types labeled HO-1 through HO-6. Each of these policies offers varying levels of coverage depending on the type of home you have and the protection you need. Whether you own a single-family house, a condo, or rent an apartment, choosing the right policy ensures you’re properly covered.

HO-1: Basic Form Homeowners Insurance (Limited Coverage)

The HO-1 policy is the most basic type of homeowners insurance and offers limited protection. It only covers a small number of named perils (usually around 10) and typically does not include personal belongings or liability coverage. This policy is not normally found with standard carriers, but most commonly offered by surplus carriers.

Covers:

• Fire or lightning

• Windstorm or hail

• Explosion

• Riot or civil commotion

• Damage by aircraft or vehicles

• Smoke damage

• Vandalism

• Theft

• Volcanic eruption

Does NOT cover:

• Water damage (e.g., burst pipes)

• Falling objects

• Personal belongings

• Liability protection

• Additional living expenses if your home becomes uninhabitable

Best for: Very few homeowners, as this policy is rarely offered due to its limited protection.

HO-2: Broad Form Homeowners Insurance (More Coverage but Still Limited)

The HO-2 policy expands on HO-1 by covering 16 named perils (including water damage from burst pipes and falling objects). However, it still follows a named-perils structure, meaning only specific risks are covered.

Covers:

• Everything in HO-1, plus:

• Falling objects

• Weight of ice, snow, or sleet

• Freezing of plumbing, heating, or air systems

• Sudden and accidental damage from electrical currents

• Accidental water discharge from home systems

Does NOT cover:

• Open perils for your home (only covers named perils)

• Replacement cost for personal property (only actual cash value)

• Floods, earthquakes, and general wear and tear

Best for: Homeowners who want basic but broader protection at a lower cost.

HO-3: Special Form Homeowners Insurance (Most Common Policy)

The HO-3 policy is the most common homeowners insurance policy because it provides a balance between coverage and affordability. Unlike HO-1 and HO-2, it offers open-perils coverage for the home, meaning all risks are covered except those specifically excluded in the policy. Personal property is still covered under named perils.

Covers:

• Dwelling (house structure): Covered under an open-perils basis

• Personal belongings: Covered under a named-perils basis

• Liability coverage: Protection if someone is injured on your property

• Loss of use: Pays for temporary living expenses if your home is uninhabitable

Does NOT cover:

• Floods and earthquakes (requires separate policies)

• Normal wear and tear

• Negligence or lack of maintenance

• Mold or pest infestations

Best for: Most homeowners, as it provides a good mix of affordability and coverage.

HO-4: Renters Insurance (For Tenants, Not Homeowners)

The HO-4 policy is designed for renters, not homeowners. It covers personal belongings and liability but does NOT insure the building itself (since the landlord is responsible for that).

Covers:

• Personal belongings (against 16 named perils)

• Liability coverage

• Loss of use (temporary living expenses if the rental unit becomes unlivable)

Does NOT cover:

• Structural damage (that’s the landlord’s responsibility)

• High-value items unless specifically added

Best for: Renters who want to protect their personal belongings and liability risks.

HO-5: Comprehensive Form Homeowners Insurance (The Best Coverage)

The HO-5 policy offers the most extensive protection for homeowners. It provides open-perils coverage for both the dwelling and personal belongings, meaning everything is covered unless specifically excluded.

Covers:

• Dwelling & personal belongings under open-perils coverage

• Replacement cost for personal property (not just actual cash value)

• Liability protection & loss of use

Does NOT cover:

• Earthquakes and floods (need separate policies)

• Negligence or intentional damage

Best for: Homeowners who want premium coverage and higher-value personal property protection.

HO-6: Condo Insurance (For Condo Owners)

The HO-6 policy is designed for condo owners, covering personal property, interior walls, and liability—but NOT the entire building, since the condo association’s master policy handles that.

Covers:

• Personal belongings (against named perils)

• Interior walls, floors, and ceilings

• Liability coverage

• Loss of use

Does NOT cover:

• The condo building’s exterior structure (that’s the association’s responsibility)

Best for: Condo owners who need personal coverage while the HOA covers common areas.

Which Homeowners Insurance Policy Is Right for You?

Here’s a quick summary to help you choose:

Policy Type	Best For	Coverage Type
HO-1	Basic coverage (rarely used)	Very limited named perils
HO-2	Budget-conscious homeowners	16 named perils
HO-3	Most homeowners	Open perils for home, named perils for belongings
HO-4	Renters	Personal belongings and liability
HO-5	High-value homeowners	Open perils for both home and belongings
HO-6	Condo owners	Interior unit coverage & personal property

If you’re unsure which policy is best for you, it’s always a good idea to speak with an insurance professional. Our insurance agents are always available to discuss your options with you, they can help you determine the right level of coverage based on your home type, risk factors, and budget.

Want to learn more about open perils vs named perils? Read more here!

(207) 363-7894 | www.tapleyagency.com | 300 York St . PO Box 808 . York, Maine 03909