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, you 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, also known as all perils 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. Form HO-4 can be issued to a tenant who maintains a residence in any kind of structure. 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 all perils coverage on not only their dwellings and other structures, but their personal property as well.
The HO-5 is designed to meet the risk management needs of homeowners of dwellings who would like the broadest coverage available. A homeowner who desires the broadest coverage available for his or her home and contents, and is willing to pay the increased premium for it, should select the HO-5.
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 dwelling coverage is needed, it is not needed to the extent of a stand-alone home.
The HO-6 is similar to the HO-4, but it includes special provisions for loss exposures related to condominiums and cooperative apartment shares. Only the owners of condominiums and cooperative apartment shares are eligible for the HO-6 policy, although the owner is not required to be an occupant of the unit.
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 independent agent about any endorsements that may benefit you personally!
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Amy joined Rockford Mutual in January of 2017 with an Associates Degree in Marketing. Amy has a great understanding of insurance in general as she is currently working towards an Associate in General Insurance designation.