Homeowners insurance is grouped into eight categories that indicate the amount of coverage provided or, in some cases, the specific type of home that the policy is written to cover.
The 8 types of homeowners insurance include these categories:
HO-1: A very limited amount of coverage for single-family dwellings. Not often sold.
HO-2: This is a more common type of single-family coverage for American homeowners.
HO-3: These are the most frequently written kind of single-family home coverage today.
HO-4: This is commonly known as renters insurance, for tenants who do not own a property where they live.
HO-5: This is also known as comprehensive home coverage, a broader type of home insurance that also covers personal belongings.
HO-6: This policy type is specific to condo owners, and works in combination with a condo association’s master policy.
HO-7: Mobile home insurance is similar in coverage to HO-3 policies, but is written specifically for manufactured and mobile homes.
HO-8: Modified coverage is written for older and historic homes with unique or irreplaceable elements that would make the replacement cost higher than the home’s market value.
What is the most commonly purchased home insurance in the U.S.?
HO-3 policies are the most popular option for homeowners in the United States, regardless of the state in which they reside. This category of coverage accounted for over 78% of the home insurance sold in 2021.
Special form, as HO-3 is also known, includes coverage for 16 most common perils that are applicable for most of the country. This is not always the case, however, as certain perils may be excluded from HO-3 coverage based on the amount of risk of that type of event in that specific state.
The 16 named perils covered by most HO-3 homeowners policies
Fire or lightning | Theft |
Volcanic eruption | |
Explosion | Falling objects |
Riot or civil commotion | Weight of ice, snow, or sleet |
Aircraft | Discharge or overflow of water or steam |
Vehicles | Sudden tearing, cracking, or bulging |
Smoke | Freezing |
Vandalism | Accidental damage from electrical current |
Sources:
Howard, Pat & Brennan, Rachael. “8 types of homeowners insurance”, PolicyGenius, May 24, 2024, https://www.policygenius.com/homeowners-insurance/types-of-homeowners-insurance/
Gray is the Senior Content Specialist at Sola Insurance, working with the Sales and Marketing teams to provide helpful, valuable content for homeowners and agents. Gray has worked previously in finance, logistics, and advertising.
