Homes come in all shapes and sizes, big and small, old and new. We all know that home is where our heart is, whether that be an apartment, a condo, a mobile home, or a traditional house. Not only does your home hold all of your things, it holds all of your memories too. Which is why we place so much value in protecting it.
This is why there are several different types of Homeowners Policy Forms available to ensure that no matter what stage you are at in your life, your home and its contents are protected. We’ll walk you through five types of policies for you to consider:
HO-2 Broad Form
This insurance policy provides named perils coverage for dwellings, other structures, and personal property. Named perils simply means that the policy will cover you for specific types of losses that are listed on the Declarations Page of your policy itself, such as loss by fire or wind.
The HO-2 policy is meant to meet the risk management needs of homeowners of dwellings.
HO-3 Special Form
The HO-3 form differs slightly from the HO-2 form, providing special form coverage for dwellings and other structures rather than named perils coverage. Special form coverage protects property against direct physical loss that is not otherwise excluded in the policy form. Named perils coverage still applies to personal property, just as it does in the HO-2 form.
The HO-3 form is designed to meet the risk management needs of homeowners of dwellings who want broader coverage on their dwellings and other structures.
HO-4 Contents Broad Form
We’ve all heard the myth that renters don’t need their own insurance, but in fact, they do! A landlord’s insurance policy typically will not cover your personal property in the event of a loss. This is why the HO-4 was created, to meet the risk management needs of tenants and other occupants of apartments or dwellings.
The HO-4 policy provides coverage for a tenant’s personal property on a named perils basis, with no coverage provided for dwellings or other structures. Persons who maintain a residence in a building that they own but that is not a one or two-family dwelling are also eligible.
HO-5 Comprehensive Form
If you’re looking for the most protection for your home, other structures and personal property, then the HO-5 Form is for you! This insurance policy provides homeowners with special perils coverage on not only their dwellings and other structures, but their personal property as well.
HO-6 Unit Owners Form
This insurance policy provides coverage for personal property on a named perils basis, with limited dwelling coverage. The HO-6 is designed to meet the risk management needs of the owners of condominium units and cooperative apartment shares. These types of properties contain adjacent walls and framing, so although some dwelling coverage is needed, it is only needed to the extent of individual’s interest in the real property.
Hopefully after reading this article we’ve given you a better understanding of the insurance options that are available to you as either a homeowner, a tenant, or a condo owner. We understand that sometimes these forms aren’t a “one-size-fits-all”, so be sure to ask your Rockford Mutual Insurance Agent about any endorsements that may benefit you personally!