Getting homeowners insurance is a must for anyone who owns their own home. There are different types of policies that you can choose from, which will vary in the level of coverage and protection they offer. HO-1 plans are one type with minimal protections; however, it may be all some people need to cover themselves against things like damage or theft on their property.

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What Does HO-1 Insurance Cover?

HO-1 Insurance is the most affordable policy that providers offer. An HO-1 insurance policy only covers your dwelling or the physical structure of your home. It also covers attached structures, like a garage and porch. These policies cover against ten perils:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Riot or civil commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Vandalism
  • Theft
  • Falling objects

Belongings are covered under an actual cash value basis, which means they will be reimbursed at their original cost minus depreciation over time.

What Does HO-1 Insurance Not Cover?

Personal Property

HO-1 insurance does not cover any personal property in any event. Any loss, damage or destruction inside or outside your home is your responsibility for repairing or replacing. 


Liability insurance, which covers a homeowner’s legal expenses in case of lawsuits, is not included with HO-1 coverage. This means if you have a guest fall down the stairs or your delivery driver slips on your icy driveway, and they sue for compensation, it would be out of pocket.

Medical payments

HO-1 insurance does not cover any medical expenses. In the event of an injury on your property, you will have to help pay for the cost of any medical fees or risk a lawsuit.

Additional living expenses

If your home is damaged in a covered peril and you need to move temporarily, HO-1 insurance policies do not reimburse you for any expenses such as hotel, food, or parking. 

Other additional perils not included in HO-1 policies include: 

  • Falling objects
  • Weight of ice, snow, or sleet
  • Freezing of household systems (AC or heating)
  • Sudden and accidental tearing apart, cracking, burning, or bulging of pipes and other household systems
  • Accidental discharge or overflow of water or steam
  • Sudden and accidental damage from artificially generated electrical current

Who Is Best Suited for HO-1 Insurance?

HO-1 insurance is not a popular choice for homeowners, as it only covers the dwelling. Because of the minimal catastrophic coverage this insurance policy offers, only a few companies sell HO-1 policies. 

If you do qualify for HO-1 insurance, it’s likely because you or your home carries a substantial amount of risk. This could be due to numerous home insurance claims you have filed in the past or if your home is old and in poor condition. 

It’s also important to note that most mortgage lenders will not approve a loan with an HO-1 policy as you are flagged as someone with a significant amount of risk, putting their company in jeopardy. 

Where Can You Get HO-1 Insurance?

HO-1 policies are no longer available in most states. HO-1 doesn’t meet lender standards for homeowners insurance, so many mortgaged homes are left unprotected.

How Much Does HO-1 Insurance Usually Cost?

It is impossible to say how much you will personally be paying because each company uses different formulas. This variable could even change from one moment to another depending on your specific situation and needs.

For example, the risk of natural disasters plays a significant role in determining your home insurance cost. States that border the Atlantic and Gulf coasts are more at risk for damaging hurricanes, which could leave you without shelter during an emergency or disaster.

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What Are the Other Types of Home Insurance Policy Forms?

When it comes to homeowner’s insurance, you have a variety of options! Below is a breakdown of the other types of home insurance policy forms. 

HO-2 Policies

An HO-2 policy, also known as a named peril insurance plan for homeowners, is an affordable option that provides coverage to your home and personal property against the limited threats listed on its declarations page. This offers more coverage than the basic HO-1 form, with six additional named perils:

  • Weight of ice, snow, or sleet
  • Accidental discharge or overflow of water 
  • Sudden and unexpected tearing apart, cracking, burning, or bulging of a built-in appliance like a water heater or centralized air conditioner or heating system
  • Freezing
  • Sudden and unexpected damage from an artificially generated electrical current
  • Volcanic Eruption

Like an HO-1 Policy, your personal property is covered under actual cash value.

HO-3 Policies

An HO-3 policy is a coverage plan that covers your home’s construction, personal belongings and liability in the event of damage or injury. The insurance will typically also cover additional living expenses and protection for other structures on your property.

An HO-3 policy is often referred to as an open perils policy, as it covers homes for all dangers except those explicitly excluded in its declarations page. 

HO-4 Policies

HO-4 insurance, also known as renters insurance, protects your personal property but not your physical building. It can also cover your personal liability and temporary living expenses if your home becomes inhabitable.

HO-5 Policies

HO-5 policies are similar to an HO-3 but provide you with premium coverage for your home. Most HO-5 policies cover both the building itself and its contents like furs, fine art, and jewelry. 

HO-6 Policies

Condo insurance, also known as HO-6 coverage, is designed to cover you if anything happens while living in a condo. The amount of protection needed will vary depending on what your HOA covers with their policies and how much you’re willing to pay.

HO-7 Policies

HO-7, commonly known as mobile home insurance, is a type of homeowner’s policy that offers protection from fire and theft. It provides average coverages like liability or personal property damage, explicitly designed for mobile homes.

HO-8 Policies

HO-8 homeowners insurance is a type of coverage that can provide you with protection if your home doesn’t meet the standards required by most insurers.

Homeowner Insurance FAQ

What’s the Difference Between HO-1 and HO-2 Policies?

HO-1 policies are no longer available in most states, but HO-2 policies protect against everything covered by the HO-1 plus two extra perils:

  • Damage from falling objects and water damage from an accidental overflow of plumbing, heating, ventilation and air conditioning (HVAC)
  • Household appliances

What’s the Difference Between HO-1 and HO-3 Policies?

The main difference between HO-1 and HO-3 policies is that virtually everything omitted from the former is included in the ladder, such as: 

  • Dwelling coverage 
  • Additional structure coverage
  • Personal property
  • Additional living expenses 
  • Personal liability 
  • Medical fees

Get the Coverage You Need with CoverageHaven

In the end, the best way to fully understand the type of coverage you need for your dwelling is to speak with a licensed insurance agent. Contact us today to find the best coverage that suits your specific needs! 

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