Types of Homeowners Insurance Explained

Whether you’re buying a house, renting an apartment, or moving into a condo, the world of property insurance can feel confusing. Terms like HO‑3, HO‑5, and HO‑4 sound more like codes than coverage, and it’s not always clear which one fits your situation.

Below is a clear, simple breakdown of the eight main types of homeowners insurance policies and who each one is designed to protect.

HO-1: Basic Form

This older policy form provides very limited coverage and is rarely offered today. It protects only against a short list of named risks such as fire, theft, or vandalism, making it insufficient for most homeowners.

HO-2: Broad Form

HO-2 policies cover more named perils than HO-1, including events like falling objects or burst pipes. It offers broader protection but remains a named-peril policy, meaning only listed events are covered.

HO-3: Special Form

The most common choice for single-family homes, HO-3 provides strong coverage. It protects the structure of your home against all perils except those specifically excluded, while personal property is still covered for named risks.

HO-4: Renters Insurance

Ideal for anyone renting an apartment, home, or room. HO-4 covers your belongings, loss of use, and personal liability. It does not insure the building itself, which is the landlord’s responsibility.

HO-5: Comprehensive Form

HO-5 offers the broadest protection. Both your home and personal property are covered for all perils unless excluded. This is common for newer or higher-value homes and provides more peace of mind at a higher premium.

HO-6: Condo Insurance

Designed for condo and co-op owners, HO-6 protects the interior of your unit, your belongings, and your liability. It works alongside your association’s master policy, which typically covers the building’s structure.

HO-7: Mobile/Manufactured Home Policy

Similar to HO-3 but tailored for mobile and manufactured homes, which face different risks and construction considerations.

HO-8: Older Home Policy

This type is built for older or historic homes that may cost more to rebuild than their market value. HO-8 often reimburses damage at actual cash value instead of replacement cost.

How to Choose the Right Policy

Start by considering whether you rent or own, the type of property you live in, its age, and which risks are most likely where you live. Also think about how much it would cost to replace your belongings today. Choosing the wrong policy—or skipping renters insurance—can leave you unexpectedly exposed.

If you’re unsure what you currently have or what you actually need, our team at Vargas & Vargas Insurance is here to help. We can review your policy, explain any gaps, and make sure your coverage truly matches your lifestyle.

Ready for peace of mind? Visit vargasinsurance.com to schedule a free policy check-up.