Home insurance can be confusing — especially with all the different coverage types, policy numbers (like HO-3 or HO-6), and fine print. But understanding what each type covers is essential to making sure your home and belongings are fully protected.
In this easy-to-understand guide, we’ll break down the main types of home insurance coverage in 2025 — what they mean, what’s included, and who they’re best suited for.
🏠 What Is Home Insurance Coverage?
Home insurance coverage refers to the specific protection included in your homeowners policy. It tells you:
- What parts of your home are covered
- What kinds of events (called perils) are covered
- What financial limits and exclusions apply
Coverage is usually divided into sections (A through F) or described by policy types (HO-1 to HO-8).
🔢 Section-Based Coverage Breakdown (A to F)
Here’s how a standard policy is structured:
Coverage A – Dwelling Coverage
Protects the physical structure of your home — walls, roof, flooring, etc.
✅ Covered:
- Fire
- Windstorms
- Lightning
- Hail
- Vandalism
🚫 Not Covered:
- Floods
- Earthquakes (without add-ons)
Coverage B – Other Structures
Covers detached parts of your property:
- Garages
- Sheds
- Fences
- Guesthouses
Usually, Coverage B is 10% of your dwelling coverage limit.
Coverage C – Personal Property
Covers your belongings:
- Furniture
- Electronics
- Appliances
- Clothing
Coverage applies even if the item is stolen or damaged away from home (e.g. while traveling).
💡 Tip: High-value items like jewelry, art, or collectibles may need extra riders or endorsements.
Coverage D – Loss of Use (Additional Living Expenses)
If your home becomes unlivable due to a covered event, this pays for:
- Hotel stays
- Temporary rentals
- Food and transport
Coverage E – Personal Liability
Protects you if someone is injured on your property or you damage someone else’s property.
Includes:
- Legal defense
- Settlements and judgments
- Medical payments
💡 Example: A visitor slips on your icy driveway and sues — this coverage kicks in.
Coverage F – Medical Payments to Others
Covers minor medical expenses if someone is injured on your property — without requiring a lawsuit.
Limits are usually between $1,000–$5,000.
🧾 Home Insurance Policy Types (HO-1 to HO-8)
Different types of homeowners insurance are labeled as HO-1 through HO-8. Let’s break them down.
-
HO-1: Basic Form
🟠 Least coverage – Rarely used today
Covers 10 named perils only:
- Fire
- Lightning
- Windstorm
- Hail
- Explosion
- Smoke
- Theft
- Vandalism
- Vehicles
- Aircraft
🚫 Doesn’t cover falling objects, water damage, or personal liability.
Best for: Very basic coverage on low-risk homes
-
HO-2: Broad Form
🟡 Covers everything in HO-1 + more:
- Weight of snow or ice
- Water damage from appliances
- Falling objects
- Freezing of pipes
Still named perils only — if it’s not listed, it’s not covered.
Best for: Budget-conscious homeowners who want moderate protection
-
HO-3: Special Form (Most Common)
🟢 The standard policy for most homeowners
- Dwelling is covered on an open perils basis (everything except exclusions)
- Personal property is covered on a named perils basis
✅ Covers most common risks, including:
- Fire, theft, wind
- Burst pipes
- Some accidental damage
🚫 Doesn’t cover:
- Earthquakes
- Floods
- Mold
- Neglect
Best for: Single-family homes and primary residences
-
HO-4: Renters Insurance
🔵 Designed for tenants, not homeowners
Covers:
- Personal belongings
- Liability
- Loss of use
🚫 Doesn’t cover the structure (that’s the landlord’s responsibility)
Best for: People renting apartments, homes, or condos
-
HO-5: Comprehensive Form
🟢 Premium version of HO-3 with:
- Open peril coverage for both dwelling and personal property
- Higher coverage limits
- Better protection for valuables
Best for: High-value homes or newer construction
💰 Typically costs more — but offers broader coverage.
-
HO-6: Condo Insurance
🟣 For condominium owners
Covers:
- Interior walls
- Fixtures
- Personal belongings
- Liability
- Loss of use
💡 The building structure is usually covered by the condo association’s master policy.
Best for: Condo unit owners
-
HO-7: Mobile Home Insurance
🔶 Similar to HO-3 but adapted for:
- Mobile homes
- Manufactured homes
- Trailers
Covers:
- Dwelling
- Personal property
- Liability
- Additional living expenses
Best for: Owners of non-traditional housing
-
HO-8: Older Home Insurance
🔴 For homes with high replacement cost but low market value (e.g., historic houses)
Uses actual cash value (ACV) instead of replacement cost.
Best for: Older homes that may not qualify for standard HO-3
🔍 How to Choose the Right Home Insurance Coverage
Here’s what to consider when choosing the right policy:
✅ Home Type
- Single-family → HO-3
- Condo → HO-6
- Rental → HO-4
- Mobile → HO-7
- Historic → HO-8
✅ Risk Level
- High-crime area? Get strong personal property and theft coverage.
- Flood zone? Add a separate flood insurance policy.
- Earthquake-prone area? Buy an earthquake endorsement.
✅ Belongings
Do you own high-value items? Choose HO-5 or add endorsements for:
- Jewelry
- Cameras
- Art
- Collectibles
✅ Budget
HO-2 and HO-3 are more affordable, while HO-5 offers premium coverage.
💡 Extra Coverage Options (Endorsements)
You can customize your policy with these add-ons:
- Flood insurance
- Earthquake coverage
- Sewer backup
- Identity theft protection
- Home business equipment
- Equipment breakdown
Always check what your base policy excludes and add endorsements accordingly.
📊 Coverage Comparison Table
| Coverage Type | Dwelling | Personal Belongings | Liability | Add-Ons Needed |
| HO-1 | Basic | Limited | Sometimes | Yes |
| HO-2 | Moderate | Moderate | Yes | Maybe |
| HO-3 | Strong | Named perils | Yes | Flood, EQ |
| HO-4 | None | Yes | Yes | Optional |
| HO-5 | Best | Best | Yes | Few |
| HO-6 | Interior | Yes | Yes | Condo master policy |
| HO-7 | For mobile homes | Yes | Yes | Yes |
| HO-8 | ACV only | Limited | Yes | Optional |
🔚 Conclusion
Understanding the types of home insurance coverage in 2025 helps you make smarter decisions and avoid nasty surprises when something goes wrong.
Whether you own a modern house, a rental property, or a century-old bungalow — there’s a policy designed to protect your space and your peace of mind.
Review your policy today, and if needed, speak to your insurer about upgrades or endorsements. Because the right coverage is not just a formality — it’s your home’s best defense against the unexpected.