Homeowners Insurance Types in US

Knowing more about the homeowner’s insurance types in US is essential to make and informed and educated decision. Seeking renters insurance when owning the home indicates lack of knowledge about homeowners insurance types in US.

Basic Types

Two basic types of home insurance types in US are

  1. homeowners insurance, which is available for all homeowners
  2. homerenters insurance, which is available for all tenants and lessees

The primary distinction between the two types is that the former focuses on property and content in the home while the latter offers cover for content only.

Important Homeowners Insurance Types in US

If you are a homeowner, you should be aware of the following homeowners insurance types in US:

  1. HO-1
  2. HO-2
  3. HO-3
  4. HO-8

HO-1 is one homeowners insurance types in US that is almost on the verge of extinction. This policy offers protection against risks like fire, wind, hail, lightening, and vehicle damage to home and damage caused by civil unrest. This policy is the cheapest because it offers minimal cover. Many states have outlawed this policy and all homeowners are better off using different online and offline resources, tips, tricks and other solutions to enjoy more coverage and relatively affordable cost. The biggest disadvantage with these homeowners insurance types in US policy is that it offers zero personal liability protection.

HO-2 is a basic policy/ form (the word form is used synonymously with policy) that provide more protection as compared to HO-1. It can be called the second best homeowners insurance types in US today. Homeowners have to focus on specific risks covered to ensure they do not end up without protection. This policy protects the homeowner from damage caused by excessive snow, malfunctioning of equipment and household appliances along with the protection offered by HO-1 policy.
HO-3 is the best homeowner’s insurance types in US. Special advantages of opting for this policy include

  1. Comprehensive coverage. The policy will cover all risks except for those specifically excluded. The excluded risks normally cover earthquakes, nuclear accidents, wars and other such risks.
  2. Numerous options for securing enough compensation to rebuild the home from scratch.
  3. Minimum stress option amongst all homeowners insurance types in US.
  4. Numerous options to reduce costs as the total number of risks covered are higher.

HO-8: Older home/ Modified cover form

This policy is best suited for old houses that will require too high an amount to replicate. The policy covers almost all risks covered by HO-2 with the specific clause that the compensation amount will be based on the actual cash value of the house in the market after considering depreciation.

Choosing the right policy with the right coverage is very important. There may be just four types but there are many other factors to be considered depending on where you live and what risks your property face.


Mere theoretical knowledge will not suffice. However, do keep in mind that not knowing the basics of homeowners insurance types in US is going to put you at risk of accepting advice from agents and third parties.