Question

Types of Homeowner’s Insurance. List and briefly describe the four packages of homeowner’s insurance that focus on insurance for the home.

Answer 1

There are different types of Homeowners insurance like HO-3,HO-1,HO-2,HO-8

HO-3
The HO-3, also known as a "special form," is the most common homeowners insurance policy form, says the National Association of Insurance Commissioners.

An HO-3 offers "open peril" coverage for the structure of your home. This means your policy will help pay for repairs if your home is damaged by any peril — unless that peril is specifically listed as an exclusion in your policy documents.

However, an HO-3 offers "named peril" coverage for your personal property (such as furniture, electronics and clothing). With named peril coverage, your policy helps pay to repair or replace your belongings only if they're damaged by the perils that are specifically listed in your policy. If the peril is not listed, it is not covered.

The HO-3 form helps cover up to 16 named perils, according to the III. These include:

• Fire and smoke
• Lightning strikes
• Windstorms and hail
• Explosions
• Vandalism and malicious mischief
• Damage from an aircraft, car or vehicle
• Theft
• Falling objects
• Weight of ice, snow or sleet
• Water damage

HO-1
An HO-1, or "basic form," is a policy that typically helps cover 10 perils (compared with the 16 perils covered by an HO-3). For example, falling objects or the weight of ice are perils not covered by an HO-1 form, the III says. Due to the limited coverage of an HO-1, many insurers no longer offer this type of policy form.

HO-2
An HO-2, or "broad form," also provides limited coverage. It's called a "broad form" because it may help cover a broader range of perils than the HO-1 "basic form."

HO-8
This type of form helps protect older homes. It helps cover up to 10 perils, according to the III. However, the reimbursement for any covered damage is paid on an actual cash value basis instead of replacement cost, says the III. This means an insurer will pay for what the cost of the item is minus depreciation. Historic homes and registered landmarks usually carry this type of policy.