What are the different types of home insurance?

Homeowners Insurance

Homeowners insurance comes in different forms to cater to varying needs and budgets. Here's a breakdown of the common types you mentioned, along with some additional details:

  • Home - Basic (HO-1): Provides the least coverage, only protecting against basic named perils like fire, theft, and windstorm. Generally not recommended due to limited protection.
  • Home - Broad (HO-2): Covers more named perils than HO-1, including falling objects and vandalism. Still considered basic coverage and not very common.
  • Home - Special (HO-3): The most popular option, covering all perils except those specifically excluded (e.g., flood, earthquake). Offers broader protection than HO-1 and HO-2.
  • Renters - Contents (HO-4): Similar to other homeowner policies with one major exception: no coverage for the dwelling itself. Designed for tenants of a room, apartment, or home.
  • Home - Comprehensive (HO-5): Provides the most comprehensive coverage, protecting against all perils except those specifically excluded and offering higher coverage limits. Generally more expensive than other options.
  • Condo - Unit-owners (HO-6): Designed for condo and townhome owners, covering their individual unit and common areas.
  • Mobile Home (HO-7): Provides coverage for manufactured homes (mobile homes, trailers, modular homes).
  • Special Home (HO-8): Less common, offering limited coverage similar to HO-1 but designed for specific situations like historic, older homes or those in high-risk areas.

Dwelling Insurance

Dwelling insurance is similar to standard homeowners insurance, with one notable difference: it does not offer coverage for personal belongings. Because of this, it is commonly recommended for landlords, rental property owners, or when the home is vacant (selling, moved out, etc.)

It can also be a cost-effective alternative to those who wish to save every dollar they can, or when the home does not qualify for a standard HO policy because of age, condition or too many claims.

  • Dwelling - Basic (DP-1): a budget friendly basic named perils that provides AVC loss settlement. It only covers only the structure of your home, not your belongings. Not as common as standard homeowner policies.
  • Dwelling - Broad (DP-2): Similar to DP-1 but covers rebuilding costs at current prices, not depreciated value.
  • Dwelling - Special (DP-3): Combines DP-1 and DP-2 features, offering replacement cost coverage for the dwelling.