Are you searching for affordable home insurance? Before contacting a home insurance company, it’s good to know about the different options that you have available to you. Home insurance is not a one size fits all type of insurance. With so many unique situations and lifestyles, homeowners insurance is highly customizable. When speaking to a home insurance company, they will most likely offer the following eight primary policies, in which you can then customize so you can obtain the best possible coverage.

​

HO-1- Basic Form Insurance

​

HO-1 is the most limited form of  insurance. It covers the home and personal belongings for damages caused by the following shortlist of perils:

​

• Fire or lightning

• Aircraft or vehicles

• Riots or civil commotion

• Explosion

• Falling objects

• Theft or vandalism

• Smoke

 

Additionally, property and belongings are only covered at actual cash value (ACV), meaning the value minus depreciation.

 

HO-2- Broad Form Insurance

​

HO-2 policies cover the home at replacement cost, meaning that depreciation is not calculated, and personal property at actual cash value. This coverage applies to the perils listed under HO-1 policies as well as the following:

​

• Freezing

• Weight of snow, sleet, or ice

• Accidental discharge/overflow of water

• Volcanic eruption

• Sudden and accidental damage from an electrical current

• Built-in appliances suddenly and accidentally ripping, cracking, bulging, or burning.

 

It's important to note that while these are the most commonly covered perils, you should also talk to your home insurance company about the specific policy for details.

 

HO-3- Special Form Insurance

​

HO-3 home insurance policies are the most common. They provide what is known as open perils or all-risk coverage. This means that they cover all incidents except for those expressly excluded in the policy. On the other hand, personal property is typically only covered under the 16 named perils from above.

 

HO-4- Contents Broad Form Insurance

​

HO-4 insurance is more commonly referred to as renters insurance. It provides coverage for your personal property, liability, and additional living expenses if your home is deemed unlivable.

 

HO-5- Comprehensive Form Insurance

​

Comprehensive form insurance is similar to HO-3 insurance. There are differences, however. With an HO-5, the home and personal property are covered at replacement cost under all perils unless a peril is specifically excluded.

 

HO-6- Unit-Owners Form Insurance

​

An HO-6 is condo insurance. It covers your personal property, personal liability, loss assessment coverage, loss of use, and medical payments. Any dwelling coverage can be obtained to fill in the gaps of your condo's master policy.

 

HO-7- Mobile Home Form Insurance

​

An HO-7 is very simple. This is similar to an HO-3 but built specifically for mobile homes, trailers, modular homes, RVs, and comparable homes.

 

HO-8- Modified Coverage Form Insurance

​

An HO-8 is similar to an HO-1 policy. However, it is made explicitly for homes at higher risk of specific perils. For instance, older homes are often at a higher risk of loss due to outdated wiring and plumbing or merely the house's overall condition.

 

If you are in need of affordable home insurance, contact BuddyInsuresYou. BuddyInsuresYou is a home insurance company that is dedicated to providing you with service that you can trust. When it comes to affordable home insurance, BuddyInsuresYou can help you save money by offering you the best coverage for the best premiums available anywhere.