The Disaster Categories Covered by Your Homeowners Insurance Policy

July 7, 2023
Home / / The Disaster Categories Covered by Your Homeowners Insurance Policy

When it comes to protecting our home and valuable belongings, having a comprehensive homeowners insurance (HO) policy is crucial. Policies come in various forms, each providing different levels of coverage for disaster categories. 

Homeowners Insurance Policy Classes

Understanding these policies will help you make informed decisions about protecting your most significant investment.

HO-1: Basic Form Policy

The most basic homeowners insurance policy, offers limited coverage for specific perils. It typically covers fire, lightning, smoke, windstorms, hail, explosions, riots, vandalism, theft, and damage caused by vehicles or aircraft. However, it does not include coverage for personal liability or medical payments. 

HO-2: Broad Form Policy

As an expanded version of the HO-1 policy, this provides coverage for the perils mentioned in HO-1 and adds coverage for falling objects, the weight of ice, snow, sleet, freezing of household systems, accidental discharge or overflow of water or steam, and sudden tearing, cracking, or bulging of certain household systems. HO-2 policies may have specific exclusions, so it’s essential to review the terms carefully.

HO-3: Special Form Policy

This is the most common homeowners insurance policy and it provides broad coverage for the dwelling and other structures on the property on an “open perils” basis. This means it covers all risks unless specifically excluded from the policy. It typically includes coverage for the dwelling, other structures, personal property, loss of use, and personal liability. However, it may exclude certain perils like earthquakes and floods, which may require additional coverage.

HO-4: Renters Insurance

Often referred to as renters insurance, it is designed for tenants who do not own the property they live in. It provides coverage for personal property, loss of use, and personal liability. While they may not offer coverage for the physical structure of the building, they can protect against natural disasters that may affect personal property. 

HO-5: Comprehensive Form Policy

This comprehensive homeowners insurance policy offers extensive coverage for both the dwelling and personal property. It provides coverage on an open perils basis, similar to HO-3. HO-5 policies typically have fewer exclusions and offer higher limits compared to other policies. 

HO-6: Condo Insurance

Designed specifically for condominium owners, this policy may not protect the exterior structure or common areas, but it often includes coverage for natural disasters that can affect the interior of the unit. The specified terms depend on each individual policy. 

HO-7: Mobile Home Insurance

Specifically tailored for mobile or manufactured homes, this provides coverage for the dwelling, personal property, loss of use, and personal liability. HO-7 policies account for the unique features and risks associated with mobile homes, offering protection for events such as fire, theft, and vandalism.

HO-8: Modified Coverage Form Policy

A policy designed for older homes that may have unique or historical characteristics. It provides coverage based on the actual cash value of the property, which takes into account depreciation. HO-8 policies typically have limited coverage and may be subject to certain restrictions and exclusions. These are tailored to meet the needs of homeowners who have difficulty obtaining coverage through other policy types.

By being informed and selecting the right HO policy for your needs, you can ensure that your most significant investment is adequately protected against unforeseen disasters that may occur.

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SunPoint Public Adjusters, Inc. (“SunPoint”) is the “Gold Standard” of the Public Adjusting industry. We comprehensively review and evaluate your insurance settlement, immediately deploy a team of specialists to assess and quantify your damages and customize a strategy around your recovery to promptly and properly maximize the resolution of your claim. 

Our in-house experts and external veteran professionals are experienced in quantifying and negotiating building, personal property, inventory, or other additional coverages. We work solely on your behalf to favorably resolve your claim. Our team ensures your insurance company does not delay, diminish, or deny benefits that are rightfully owed to you. Industry authorities agree that having a public adjuster like SunPoint on your side early in the process expedites and maximizes your recovery.

Policyholders have been benefiting from our knowledge and advocacy for decades. We have handled, managed, and successfully navigated claims ranging from homeowner losses; corporate losses in the hundreds of millions of dollars; disaster losses involving government entities and entire municipalities; agricultural and recall losses, and virtually any type of disaster claim that could be imagined. 

Our team of Public Adjusters, building cost consultants, inventory specialists, forensic accountants, and equipment consultants are unmatched in our industry. It is easy to be big. But it takes dedication every day to be the best – we have that dedication. Our goal is aligned with yours. To obtain a free insurance settlement assessment of your specific circumstances and recovery please contact us and strategize your optimal means of recovery.