3 Types of Homeowner Policies

When it comes to insurance for homes, 78% of homeowner's policies are HO-3 policies, according to ComfyLiving. There are eight types of policies, all starting with HO and then a corresponding number from HO-01 to HO-8. The numbers correspond to different home types and different types of coverage. HO-1 is no longer in use, and HO-2 policies are used less frequently. HO-6 covers condos, and HO-7 is for mobile or manufactured homes. HO-8 is a unique policy type that relates to older houses that don't meet current standards. Let's take a closer look at the three most commonly used types of insurance for homes.

1. HO-3 Special Form: Basic Single-Family Home Policies
If you have fairly conventional insurance needs, an HO-3 policy is likely to be a good fit. This policy type provides standard coverage and is the most common insurance type on the market. With this type of insurance covering your home, your building structure and contents are all covered. There are exclusions to covered events, and every policy is different, so be sure to check that the policy you select provides the protection you need.

2. HO-4 Contents Broad Form: Renter's Insurance
One of the best features of a Broad Form, or renter's insurance policy, is the breadth of protection provided for your belongings. For example, if your bike is stolen from a nearby park, the loss will be covered by an HO-4 policy. Of course, like all other insurance policy types, there are exclusions. Be sure to sign up for renter's insurance because your personal items won't be covered by your landlord's policy.

3. HO-5 Comprehensive Form: Comprehensive Single Family Home Policies
Anyone who has expensive personal items, like electronics, jewelry, and art can benefit from an HO-5 policy. This type of homeowner's policy is more robust than its HO-3 counterpart. There are higher limits to coverage and more favorable treatment for reimbursement for the replacement of lost or damaged belongings. They also offer all-risk protection for both your belongings and the structure covered by the policy. This type of policy is considered a good option for high-net-worth individuals with a higher risk profile in a high-loss area.

Tell Your Agent if You Are Using Your Home as a Vacation Rental
With home sharing services becoming a massive industry, it is important to know what your home insurance policy covers if you plan to join the growing trend. Since home sharing is considered a business operation, your entire policy may be rendered null and void if you fail to inform your insurance professional about the change.

Insurance held by rental services like Airbnb, HomeAway and Vrbo could leave gaps in coverage. While these sharing services may cover property damage, they often do not cover certain situations — for example, if a guest damages a neighboring property or sustains an injury while using your boat or bicycle. In addition, if a guest damages the unit and renders it uninhabitable, you might not be covered for the lost rental income. And claims resolution could get complicated if you rely solely on home-share insurance services.
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We are the experts when it comes to insurance for homes in the greater Dripping Springs area. Contact Rollo Insurance today to schedule an appointment to find out more about the policies that are currently available in your area.