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Unit 1 The World of Insurance
Form Coverage Perils Covered
HO-2 Covers home and personal property losses
caused by 16 perils. Also covers personal
and medical liability, damage to the property
of others, living expenses if the home is
damaged, legal defense in liability cases, and
personal property when traveling.
A version of HO-2 is available for mobile
homes.
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material that is part of a building
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water or stream
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cracking, burning, or bulging of the structure
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artificially generated electrical current
HO-3 Protects the home against all perils, with
exceptions specifically listed.
Considered an “all perils” policy. Common
exceptions are earthquakes, floods, and
acts of war.
HO-4 Protects a renter’s furniture, clothing, and
other personal items from damages. Also
provides the tenant with liability insurance in
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All perils listed in HO-1 and HO-2.
HO-5 The most comprehensive coverage available. It is
a “no perils” policy and it protects personal property
without limitation to the perils listed for HO-2.
Considered a “no perils” policy.
HO-6 Covers personal property and alterations to
a condominium unit. (A condominium is a
unit in a multiunit building that is purchased
instead of rented.)
Same as HO-2.
HO-8 Only protects the home against ten perils and
typically offers cash value for losses. Often
used to insure an older home that would cost
more to replace than it is worth.
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Figure 2-1. Homeowner’s Insurance Policy Types