Types of Home Insurance Policies: HO-1 Through HO-8 Explained

The 8 Types of Home Insurance Policies at a Glance

Home insurance policies in the U.S. are standardized into eight forms, HO-1 through HO-8, each designed for a specific type of property or coverage need. Before diving into the details, here's a quick-reference comparison of all eight:

Two of the most important distinctions across all HO forms are named perils vs. open perils and replacement cost vs. actual cash value (ACV). Named-peril policies only cover losses from events explicitly listed in the policy. Open-peril (also called "all-risk") policies cover any loss unless it is specifically excluded, putting the burden of proof on the insurer to deny a claim. Learn more about how these work in our guide to accidental damage and home insurance coverage.

HO-1 Through HO-5: Policies for Standard Homes

HO-1, Basic Form (Rarely Issued)

The HO-1 is the most stripped-down homeowners policy available, covering only about 10 named perils such as fire, lightning, windstorm, hail, explosion, theft, vandalism, smoke, riot, and volcanic eruption. It typically covers only the dwelling structure, with no personal property and, in most versions, no liability coverage.

The HO-1 is largely a relic. Most major insurers have discontinued it, and following the March 18, 2026 FHFA rule (Fannie Mae Lender Letter LL-2026-03 and Freddie Mac Bulletin 2026-C), mortgage lenders now require a "Special" form policy with replacement cost dwelling coverage, permitting ACV only on roofs. If you're being offered an HO-1, it's worth exploring all alternatives first. Read our full breakdown in our HO-1 basic form coverage guide.

HO-2, Broad Form

The HO-2 expands on HO-1 by adding around 16 named perils, including falling objects, freezing pipes, accidental water discharge, electrical damage, and glass breakage. Both the dwelling and personal property are covered, along with basic liability and additional living expenses.

It pays out at actual cash value (ACV), meaning depreciation is deducted from your claim payout. It's typically 10 to 20% cheaper than an HO-3 but offers narrower protection. HO-2 remains a niche product, accounting for only a small share of owner-occupied policies today. For a detailed look at whether broad form coverage makes sense for you, see our HO-2 broad form coverage guide.

HO-3, Special Form (The Most Popular Policy)

The HO-3 is the most common homeowners insurance policy in the U.S., with industry sources putting its market share anywhere from 55% to nearly 80% of all owner-occupied policies. Here's what makes it stand out:

• Dwelling coverage: Open perils, covered against all risks except those explicitly excluded (like floods or earthquakes)
• Personal property: Named perils, only covered for the ~16 listed causes of loss
• Liability, medical payments, and additional living expenses: Included
• Dwelling payout: Replacement cost value

In 2026, the average HO-3 policy costs about $2,490 a year for $400,000 of dwelling coverage nationally, with LendingTree pegging the overall national average at $2,395 per year and Forbes at $2,720 per year for a $350,000 dwelling limit with a $500 deductible. State variation is enormous. The one gap in an HO-3 is that personal property still falls under named perils. If a mysterious or unusual cause damages your belongings, you may not be covered. For most homeowners, though, the HO-3 strikes the right balance of cost and protection.

HO-4, Renters Insurance

The HO-4 is built exclusively for tenants. It covers your personal property and liability but includes zero dwelling coverage (that's your landlord's responsibility). It operates on a named-perils basis and also covers additional living expenses if a covered event makes your rental uninhabitable. With average costs of just $13 to $23 per month (and carriers like Lemonade and Amica starting around $9 to $10), it's one of the most affordable and underutilized policies in the market.

HO-5, Comprehensive Form

The HO-5 is the most robust standard homeowners policy available. The key difference from HO-3? It extends open-perils coverage to your personal property as well, and pays out at replacement cost value for both your home and your belongings, with no depreciation deductions.

HO-5 is ideal for homeowners with high-value belongings, those in areas with diverse risks, or anyone who wants the most comprehensive protection with fewer claim disputes. In 2026 it typically costs just 10 to 20% more than an HO-3 annually, though it's getting harder to qualify for in climate-risk regions. Explore the full comparison in our HO-3 vs. HO-5 coverage guide or review the six standard home insurance coverages A through F to understand what each policy protects.

HO-6, HO-7, and HO-8: Specialized Policy Forms

HO-6, Condo / Unit-Owners Insurance

If you own a condo or co-op, an HO-6 is your go-to policy. Because the condo association's master policy covers the building's exterior and common areas, the HO-6 focuses on "walls-in" coverage, protecting your interior improvements, personal property, and personal liability.

Key coverages under HO-6:

• Interior structures (flooring, cabinets, fixtures you own)
• Personal property (named perils)
• Personal liability
• Loss assessment (if the HOA levies a special charge after a shared loss)
• Additional living expenses

HO-6 policies are significantly more affordable than HO-3 policies. The 2026 national average is roughly $455 per year (about $38 per month), though coastal states can push premiums much higher. Florida averages about $1,130 per year, Louisiana $845, Texas $785, and Arizona $775, while Maine averages just $305 and Wisconsin $315. Other reputable analyses put the national average between $490 and $531 depending on methodology. For a detailed walkthrough, see our HO-6 condo insurance guide.

HO-7, Mobile and Manufactured Home Insurance

The HO-7 is the HO-3 equivalent for mobile, manufactured, and modular homes. It provides open-perils coverage for the structure and named-perils coverage for personal property when the home is stationary. It does not cover motor homes or homes being transported.

Specialty insurers like Foremost, American Modern, Assurant, American Family, and Erie lead the market. National average premiums typically run $700 to $1,500 per year, though MarketWatch's 2026 review places the range at $750 to $2,400 depending on company, location, and home characteristics. High-risk regions can push much higher: Florida and California often average around $1,800 per year, while Texas commonly runs $1,500 to $2,700 per year. Underwriting has also tightened in 2026, with many carriers declining older units and raising percentage-based wind and hail deductibles in tornado-prone and coastal regions. In California, a new 2026 law lets mobile homeowners choose replacement cost value instead of only actual cash value. Learn more in our HO-7 mobile home insurance guide and our full mobile home insurance comparison for 2026.

HO-8, Modified Coverage for Older Homes

The HO-8 is specifically designed for older or historic homes (typically those built more than 40 years ago) where the cost to rebuild to original standards far exceeds the home's market value. Standard insurers often won't write full replacement cost policies for these properties, making HO-8 the practical alternative.

Key characteristics of HO-8:

• Named perils only (~10 perils, similar to HO-1)
• Pays claims at actual cash value, with depreciation applied
• Focuses on functional repair using modern materials, not full historic restoration
• Covers dwelling, personal property, liability, and additional living expenses

One of the biggest 2026 shifts affecting older homes is the March 18, 2026 FHFA rule (Fannie Mae Lender Letter LL-2026-03 and Freddie Mac Bulletin 2026-C), which allows lenders to accept homeowners policies with ACV roof coverage as long as the rest of the dwelling is on a replacement cost basis. Insurers are also relying more heavily on hyper-local ZIP-code modeling, satellite imagery, and AI to identify high-risk properties, which disproportionately impacts older homes with aging roofs. In California, new laws now require insurers to pay at least 60% of contents coverage limits (up to $350,000) after a qualifying total loss without an itemized inventory list, benefiting older-home owners rebuilding after a disaster.

For a deeper look, our HO-8 older home insurance guide covers everything from coverage triggers to the shift toward Functional Replacement Cost coverage as an alternative.

How to Choose the Right Home Insurance Policy

Match Your Policy to Your Property Type

The simplest starting point is your property type:

Townhouse owners face a unique situation. Whether you need an HO-3 or HO-6 depends on how your property is titled, so review the HO-3 vs. HO-5 comparison if your townhouse is fee-simple.

Key Questions to Ask Before Buying

Before committing to any policy, ask these five questions:

1. Is this open perils or named perils? Open perils offers broader protection and fewer claim disputes.
2. Does my property qualify for replacement cost, or just actual cash value? ACV can leave you thousands short after a major loss.
3. What are the personal property limits, and are high-value items covered? Jewelry, electronics, and art often need separate endorsements.
4. Does the policy match my property type exactly? A standard HO-3 won't properly cover a condo or mobile home.
5. What common exclusions apply, and do I need separate flood or earthquake coverage? All HO forms exclude floods and earthquakes by default, and percentage-based wind/hail deductibles have continued to climb in 2026.

Consider Your Coverage Amounts Too

Choosing the right policy type is only half the equation. Make sure your coverage limits are sized correctly for today's rebuild costs of $150 to $250+ per square foot. Our guide on the six standard home insurance coverages A through F can walk you through the details. If your primary concern is protecting against sudden damage events, review our guide on what home insurance covers for accidental damage.

Frequently Asked Questions

What is the most common type of home insurance policy?

The HO-3 (Special Form) is by far the most common homeowners insurance policy in the United States, with industry data placing its market share between 55% and nearly 80% depending on the source. It provides open-perils coverage for the dwelling structure and named-perils coverage for personal property, along with liability, medical payments, and additional living expenses. Most mortgage lenders following the March 2026 FHFA rule require at least an HO-3-level policy for financed homes, which is why it dominates the market for standard single-family homes.

What is the difference between named perils and open perils coverage?

Named-perils coverage only pays for losses caused by specific events listed in your policy, such as fire, theft, or windstorm. If the cause isn't on the list, the claim is denied. Open-perils (or "all-risk") coverage works the opposite way: it covers any loss unless the cause is specifically excluded, which puts the burden of proof on the insurer rather than the homeowner. HO-3 uses open perils for the dwelling and named perils for personal property, while HO-5 applies open perils to both.

Do I need a different policy if I own a condo?

Yes, condo owners need an HO-6 policy, not a standard HO-3. Because the condo association's master policy typically covers the building's exterior and common areas, an HO-6 focuses on your unit's interior, personal belongings, personal liability, and loss assessments from the HOA. The 2026 national average cost is around $455 per year, though Florida averages closer to $1,130 and Texas around $785. The exact coverage you need depends on whether your HOA has a "bare walls-in," "single-entity," or "all-in" master policy.

Is HO-5 worth the extra cost over HO-3?

For most homeowners, yes, especially if you own high-value electronics, jewelry, furniture, or other personal property. The HO-5 extends open-perils coverage to personal belongings and pays replacement cost value (not depreciated ACV) for those items. The premium difference is typically only 10 to 20% more than an HO-3, which can easily be offset by a single avoided claim dispute. However, HO-5 is becoming harder to qualify for in climate-risk areas, so eligibility matters as much as cost.

What type of insurance covers a mobile home?

Mobile and manufactured homes are covered by an HO-7 policy, which is the mobile home equivalent of an HO-3. It provides open-perils coverage for the dwelling (when stationary) and named-perils coverage for personal property. Specialized insurers like Foremost, American Modern, Assurant, American Family, and Erie are the leading providers, with 2026 premiums typically running $700 to $2,400 nationally. Many carriers now decline coverage for units over 25 years old, so pre-1976 mobile homes may need a specialty carrier or a state FAIR plan.