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What Are the Types of Homeowners Insurance Policies Part 2

Many people don’t realize that there are more types of homeowners insurance policies besides those specifically designed for single-family homes. Multi-unit dwellings and condominiums have unique risks. With unique concerns, these properties might need different coverage.
This post will look at some types of coverage not mentioned in part one of the series. Click here if you missed Part 1.

Other Types of Homeowners Insurance Policies

HO-6: Unit-owners Form

This coverage is for condo owners who want to protect their property from damage or loss. It also covers medical payments, loss of use, and personal liability claims.
Condo insurance coverage can vary depending on what your condominium association’s HOA insurance covers.

HO-7: Mobile Home Form

Mobile homes are a unique type of structure. As such, insurers offer policies to address the specific issues of mobile homes.
An HO-7 policy covers mobile homes not covered under a single-family home insurance policy. Besides protecting the structure of your home, it also covers your personal belongings, additional living expenses, liability, and medical payments.
You can cover the exterior of your home with an open perils policy. Open perils will cover any situation not explicitly stated in the insurance policy. However, HO-7 policies cover your personal belongings under a named perils policy. That means the policy only covers your items under specific circumstances. These include damage from aircraft or vehicles, explosions, fire and lightning, windstorms and hail, smoke, theft, riots, and vandalism.

HO-8: Modified Coverage Form

What happens if you live in a home that does not meet the current standards for homeowners insurance? You can still protect your investment with an HO-8 policy.
This coverage is for homes with older wiring, plumbing, or roofs more susceptible to damage. An HO-8 policy can cover these homes without requiring updates or four-point inspections.
HO-8 policies are named peril policies that only provide coverage for ten perils mentioned in HO-1. They reimburse homeowners according to the actual cash value rather than replacement cost.

The Bottom Line

If you’re new to home ownership, it may be intimidating to think about all the different types of coverage. However, it’s important to remember that insurance is not a one-size-fits-all product. Different coverage options exist for different homes.
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