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What Are the Different Types of Home Insurance?

What Are the Different Types of Home Insurance

Did you just buy a new home? If so, buying home insurance for it is a must.

You can legally own a home without having home insurance for it. But more often than not, your mortgage company is going to require you to purchase a home insurance policy.

You’re also going to sleep better at night knowing you have the best home insurance policy in place. It’ll provide your home with the protection it needs and provide you with peace of mind.

You should learn about the different types of home insurance prior to purchasing a home insurance policy, though. There are so many home insurance options for you to choose from, and it’s important to select the right one.

Today, we’re going to take a look at some of the various types of insurance for homes. It’ll help you choose the right one in the end. Check them out below.


Of all the home insurance options on this list, this one is the most basic. An HO-1 home insurance policy is going to provide you with coverage for the structure of your home and any structures that might be attached to it, like a garage. But that is pretty much going to be where the coverage ends.

An HO-1 home insurance policy is not going to cover any of the personal possessions that you have in your home. It’s also not going to provide any kind of liability insurance for you.

Because of this, an HO-1 home insurance policy is usually a very cheap home insurance policy. But it’s going to be very bare-bones in what it covers, which is why people often opt for other types of home insurance over it.


If you want to make sure that you have a home insurance policy that covers both the structure of your home and everything that you have inside of it, then an HO-2 home insurance policy might be a better option for you. The key difference between an HO-1 policy and an HO-2 policy is the fact that an HO-2 policy sets you up with protection for your belongings.

These belongings will typically be covered regardless of where you keep them. Even if you have them out in your car, they could very well have coverage under an HO-2 home insurance policy.

One thing worth noting about an HO-2 home insurance policy, though, is that it’s not going to set you up with any kind of liability insurance. This means you could be on the hook if someone is ever injured on your property.


While there are advantages to going with HO-1 and HO-2 home insurance policies—namely that they’re both cheap home insurance policies—an HO-3 home insurance policy is usually going to be your best bet. It’s the most common of the different types of home insurance.

An HO-3 home insurance policy is going to provide you with coverage for your home and your personal possessions. But it’s also going to go the extra mile by providing liability coverage and giving you access to funds that will cover living expenses and medical payments.

More often than not, this is the type of home insurance that you’re going to want. It’s the perfect house insurance for most people.


An HO-4 insurance policy is actually a type of policy that’s not ideal for homeowners. Instead, this kind of policy, which is also known as renters insurance, is a great option for those that rent houses, condos, apartments, etc.

An HO-4 insurance policy will give you coverage for your personal possessions when you’re renting a property from someone else. It’ll also provide you with liability coverage to some degree. It’s a good option to have for those who prefer to rent versus buy.


Do you have a lot of very valuable items in your home, like jewelry and electronics? If you do, then something like a standard HO-3 home insurance policy might not do the trick for you.

Rather than going with that kind of policy or one of the other types of home insurance, you’ll want to get your hands on an HO-5 home insurance policy. It’s widely considered to be the gold standard within the home insurance industry.

An HO-5 home insurance policy is, hands down, the best home insurance policy that money can buy. It’s going to cover your house and everything in it, including high-value items that other insurance policies might not touch.


If you just bought a new condo as opposed to a new house, then you’ll want to look into getting an HO-6 home insurance policy versus one of the other types of home insurance listed here. This type of insurance policy was created specifically for condo owners.

As a general rule of thumb, you’ll usually already have insurance for many of the common areas that surround your condo through your condo association. But you’ll be responsible for picking out an insurance policy for your specific condo and everything inside of it.


An HO-7 home insurance policy is designed for those who own homes that fall outside of the traditional home spectrum. This includes mobile homes, modular homes, and even RVs.

If you own one of these kinds of homes, an HO-7 home insurance policy can protect your home itself and give you coverage for the personal possessions that you have inside of it. It’ll also give you access to liability insurance and cover many other expenses that you might face following accidents, natural disasters, etc.


If you happen to live in a historic home that would be very difficult to replace, an HO-8 home insurance policy might be in your best interest. It costs a lot of money to replace historic homes—often more money than a home is even worth—so it’s important to have them insured with the right types of home insurance.

You’ll want to speak with a home insurance expert about this type of home insurance since it’s a little bit out of the ordinary.

Which of These Types of Home Insurance Would Work Best for You?

If you’re going to go through the trouble of securing a home insurance policy for your house, it’s important for it to be the right one. You don’t want to obtain a home insurance policy only to find out that it doesn’t provide you with as much coverage as you expected later.

Consider each of the types of home insurance listed here and figure out which one would be your best option. It’ll ensure that your home, your belongings, and, most importantly, you are protected at all times.

Get more information on choosing the right type of home insurance by reading through the other informative articles found on our blog.

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