Types of Coverages

Whether you own or rent, there are different packages of home insurance offered to protect your home and belongings. Each package protects against a specified number of perils. Perils are events that cause damage to property. Three examples are fire, windstorm and theft.

An insurance form is another name for an insurance policy, and it specifies what perils your home and belongings are insured against. The following are descriptions of the various insurance forms available for homeowners, renters and condominium owners. Not all insurers use these exact terms to describe their home insurance forms; however, the coverage provided will be similar.

Single Family Dwelling
You may be able to find coverage for your single family dwelling under a Homeowners policy. Homeowners policies may be written on an "open perils" basis or "named peril" basis. The "open perils" basis provides coverage to your dwelling for direct physical damage unless excluded by the policy. The specifically "named peril" basis states the peril that must first occur before the policy will respond.

Bare in mind, all Homeowners policies will have exclusions. Specific policies are available for homeowners, renters, condominium owners and manufactured homeowners.

The three Homeowners package forms that are offered to owners of single-family owner-occupied homes are HO 00 02, HO 00 03, and HO 00 08. These policy forms insure your home and belongings against the perils named in the policy.

Homeowners Broad Form (HO 00 02) offers "named peril" coverage on all property damage for 16 perils.

Homeowners Special Form (HO 00 03) is the most popular of all Homeowners forms and offers a broad range of coverage. This form provides "open peril" coverage on your home and other structures, along with "named peril" coverage on your contents.

Homeowners Modified Coverage Form (HO 00 08) is designed to provide "named peril" coverage on older homes. Typically used when the cost to replace the home is much more than the market value of the home. It insures your property against 10 perils.

If your property does not meet the insurance company's underwriting requirements, you may need to consider a "dwelling policy". A "dwelling policy" provides more limited property coverage than a Homeowners policy. The "dwelling policy" provides property coverage. The Homeowners policy offers a combination of property and liability coverages.

Dwelling policies may be used to insure homes that do not qualify for Homeowners insurance.

Mobile Homeowners
Manufactured housing policies provide similar coverages as the Homeowners policies.

Renters
If you rent an apartment or a house, you typically need personal property coverage and liability coverage.

Homeowners Contents Broad Form (HO 00 04), or a renter policy, insures your household contents and personal belongings against the perils included in the HO 00 02. Like home insurance, it provides coverage for loss of use, personal liability protection and medical payments to others. Liability coverage protects renters the same as it would if you were a homeowner.

Condominium
An individual unit owner policy is similar to homeowners and renters insurance. You will also have separate coverage for your structure and collective property through your condominium association.

Homeowners Unit-Owners Form (HO 00 06) will cover a unit-owner that wishes to insure his or her property or to cover any items not insured by the association's policy. A unit-owner policy will also pay for property damage to personal belongings, wall, floor and ceiling coverings, and any accessories not originally installed in the unit. It also provides coverage for loss of use, personal liability protection and medical payments to others.

Town Home
The two Homeowners package forms that are typically offered to owners of town homes are the HO 00 02 and HO 00 03.

Homeowners Broad Form (HO 00 02) offers "named peril" coverage (covers causes of loss specifically named in the policy) on all property damage for 16 perils.

Homeowners Special Form (HO 00 03) is the most popular of all Homeowners forms offers broad range of coverage. This form provides "open peril" coverage (covers all causes of loss that are not specifically excluded in the policy) on your home and other structures, along with "named peril" coverage on your contents.

Rental Property
Rental property is normally covered using a "dwelling policy." This policy provides coverage on the property for loss from certain perils. It does not provide personal liability protection.