Types of Homeowners Insurance Policies

Fri Mar 31st, 2023 on     Homeowners Insurance,    

Your home is most likely the single largest investment you will ever make. It makes sense, then, to take precautions to make certain your investment is protected. To this end, most people in the Sunshine State have a residential insurance policy to protect their homes from the unexpected. If your home is subject to a mortgage, a residential insurance policy is required. 

There are different kinds of insurance available to homeowners, and obtaining the correct type and coverage for your property is essential to ensuring your home is protected. Even with the best coverage, insurance companies at times deny claims from homeowners. When this happens, Miami insurance law attorneys from Ver Ploeg & Marino are here to help. 

The Florida Office of Insurance Regulation has listed the following types of homeowners’ insurance policies.

HO-1 Basic Form

In this type of basic residential insurance policy, anything that happens outside of the perils named specifically in the policy is not covered. The ten perils listed are:

  • Fire (Smoke)
  • Explosions
  • Lightning
  • Hail (Windstorms)
  • Theft
  • Vandalism
  • Damage from Vehicles
  • Damage from Aircraft
  • Riots (Civil Commotion)
  • Volcanic Eruption

There is typically no coverage for personal belongings or for uninhabitability of the property. Because of the many things it does not cover, this HO-1 is not a popular type of insurance.

HO-2 Broad Form

This type of insurance, like the HO-1 form, only provides coverage for perils listed in the policy, as well as some other items, such as personal belongings and personal liability. According to the Florida Office of Insurance Regulation, this type of insurance “also covers accidental discharge or overflow of water or steam, falling objects, freezing of household systems like AC or heating, sudden and accidental damage from an artificially generated electrical current, sudden and accidental tearing apart, cracking, burning, or bulging of pipes and other household systems, as well as weight of ice, snow, or sleet.” If your claim for damages for covered property is denied, the Miami insurance law attorneys at Ver Ploeg & Marino can help. 

HO-3 Special Form

HO-1 and HO-2 policies both address coverage of named perils. HO-3 differs in that it is considered open-peril. What this means is that unless an insurer excludes a certain peril from the policy, it is covered. In most circumstances, these policies cover the home as well as attached structures, such as the garage. Covered perils usually include fire, lightning, windstorms and hailstorms. Also, these policies can provide coverage for personal liability and personal belongings. 

HO-3 policies do not typically cover earthquakes and floods, although coverage may be obtained separately. It is best to know exactly what your policy does and does not cover before an accident or incident occurs. Miami insurance law attorneys can help with any questions you may have.  

HO-4 Tenant

These policies are frequently referred to as “renters insurance”. This insurance typically covers items located inside the dwelling as well as permanent fixtures installed by the renter. Generally, these are named perils policies similar to HO-2s, and they provide liability and personal property coverage. Medical coverage for others and living expenses due to loss of use may also be covered. 

HO-5 Comprehensive Form

An HO-5 policy is very similar to the HO-3 policy as both are open peril policies. However, there are a few differences. In addition to providing open peril coverage on the structure of the home, HO-5 also provides open peril coverage for personal belongings. HO-5 policies will also typically pay the replacement cost of an item while the HO-3 will only provide for the actual value of the item. 

The cost of an HO-5 policy is generally more than an HO-3 policy, and fewer homes are eligible for HO-5 policies. It is considered to be a more comprehensive coverage with superior protection. 

HO-6 Condo Form

The HO-6 policy provides coverage for condominiums and in most cases is a named-peril policy, although it is sometimes an open-peril policy. You may hear the HO-6 policy referred to as “walls-in” coverage. This is because it provides coverage for the interior of the condo. Your HO-6 policy may also cover your share of the expenses on common property loss. This is known as “Loss Assessment Coverage.” Common property includes hallways and other shared areas. 

HO-6 policies can also cover living expenses you incur when your condominium becomes unlivable due to a covered incident. Routine wear and tear, however, is not generally covered under an HO-6 policy.

HO-7 Mobile Home Form

HO-7 policies cover manufactured homes, including dwellings such as RVs, trailers, single-wide mobile homes, double-wide mobile homes, and sectional homes. They are usually open peril policies with a lot of similarities to HO-3 policies. 

These policies also generally include coverage for detached structures, personal property, and liability. 

What the HO-7 policy does and does not cover may vary in different states and with different insurers. Speaking with Miami insurance law attorneys can help to clarify what a particular HO-7 policy does and does not provide coverage for. For items not covered, separate policies are generally available.

HO-8 Older Home Form

For homes that are over 40 years of age or older, an HO-8 policy is generally the proper type of coverage. This is because when homes of this age are damaged or destroyed the material that is needed to repair and replace the damaged or destroyed areas is very expensive — even more expensive than the actual value of the home. Homes that are architecturally important can also qualify for coverage under an HO-8 policy. 

These policies are typically named-peril policies very similar to HO-1 policies. 

Contact the Miami Insurance Law Attorneys at Ver Ploeg & Marino

No matter the type of residential property insurance you have, if your claim for coverage is denied, contact the Miami insurance law attorneys at Ver Ploeg & Marino. We are lawyers experienced in helping policyholders obtain the coverage they deserve under the terms of their policy, and we may be reached via our contact page.

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