Home Insurance

Policy Type

 

Dwelling Fire Form
A form that provides coverage on a home against fire, smoke, windstorm, hail, lightning, explosion, vehicles, and civil unrest. It does not cover the assured’s personal property, personal liability, or medical expenses. It is the type of policy a mortgage lender will buy for a borrower if the latter’s homeowner policy lapses.
Basic Form
A basic policy form that provides coverage on a home against 11 listed perils; contents are generally included in this type of coverage, but must be explicitly enumerated. The perils include fire or lightning, windstorm or hail, vandalism or malicious mischief, theft, damage from vehicles and aircraft, explosion, riot or civil commotion, glass breakage, smoke, volcanic eruption, and personal liability. Exceptions include floods, earthquakes. Most states no longer offer this type of coverage.
Broad Form
A more advanced form that provides coverage on a home against 16 listed perils (including all 11 on the HO1). The coverage is usually a “named perils” policy, which lists the events that would be covered.
Special Form
The typical, most comprehensive form used for single-family homes. The policy provides “all risk” coverage on the home with some perils excluded, such as earthquake and flood. Contents are covered on a named peril basis. (Note: “all risk” is poorly termed as it is essentially named exclusions (i.e., if it is not specifically excluded, it is covered).)
Contents Broad Form
The Contents Broad, or Tenants, form is for renters. It covers personal property against the same perils as the contents portion of the HO2 or HO3.[10] An HO4 generally also includes liability coverage for personal injury or property damage inflicted on others.
Comprehensive Form
Covers the same as HO3 plus more. On this policy the contents are covered on an open peril basis, therefore as long as the cause of loss is not specifically excluded in the policy it will be covered for that cause of loss.
Unit-Owners Form
The form for condominium owners. It insures personal property, walls, floors and ceiling against all of the perils in the Broad Form. The rest of the condo is covered by a separate policy purchased by the association.
Modified Coverage Form
The form is for the owner-occupied older home whose replacement cost far exceeds the property’s market value.