Homeowners Policy Forms Comparison
Forms and Coverages
There are many different types of homeowners insurance policies available. Normally, the type of policy coincides with the type of structure to be insured and how the structure is occupied. The type of policy also correlates to the coverage available as well.
Homeowners insurance typically covers the dwelling including attached structures, certain unattached structures and your personal property. Additional Living Expense (ALE) and coverage for Liability is also normally included. All coverage is subject to the limits specified in the policy.
ALE provides indemnity for “additional” expenses of an insured that must live elsewhere due to a covered loss to the insured residence. ALE pays only reasonable ”excess” expenses until the property is habitable.
There are special limits on certain items such as jewelry, guns, furs, money, cameras, art or antiques, etc. You should review this list found in your policy and speak to your agent about additional coverage if needed.
Flood damage is not covered by your Homeowner's insurance policy. If you need flood coverage you must purchase a flood insurance policy.
Homeowners insurance typically covers the dwelling including attached structures, certain unattached structures and your personal property. Additional Living Expense (ALE) and coverage for Liability is also normally included. All coverage is subject to the limits specified in the policy.
There are many different types of homeowners insurance policies available. Normally, the type of policy coincides with the type of structure to be insured and how the structure is occupied. The type of policy also correlates to the coverage available as well.
Flood damage is not covered by your Homeowner's insurance policy. If you need flood coverage you must purchase a flood insurance policy.
Dwelling
Policies: All Except HO-4
Dwelling coverage refers to the coverage in your basic homeowners policy that covers your home, or in insurance lingo, dwelling. This coverage protects your home you live in, plus any attached structures (your garage, for example), from perils listed in your insurance policy. Some of these include vandalism, theft, windstorms, and more.
Should you file a claim for damage by any of the listed perils, your homeowners insurance may help cover the costs to repair your home or rebuild it. BTW: if your deck or porch is attached to your home, they may also be considered a part of your dwelling, and may also be covered by the dwelling coverage in your homeowners insurance policy.
Why doesn't the HO-4 form include this coverage? It's designed for condo owners, who do not own the physical building itself, just the space inside of it. In this scenario, the building is typically insured through a property policy held by the Homeowners Association.
Personal Belongings
Policies: All Except HO-1
Contents insurance, or personal property insurance, is coverage for “your stuff” (bikes, laptops, TVs, etc.) – it’s also known as Coverage C on renters and homeowners insurance policies.
Your home contents insurance policy will cover the stuff you own (read: anything owned by landlords, roomers, or boarders isn’t covered), when you’re at home or out and about. Also known as personal property coverage, this type of insurance policy is extended to bad things that may happen (named perils) to the stuff your friends and family may have left at your place.
Part of any standard renters or homeowners insurance policy, your personal property coverage (also known as Coverage C) helps you recover the cost of your lost or damaged stuff for a bunch of different scenarios.
Liability Coverage
Policies: All Except HO-1
Personal liability coverage protects you against bodily injury or property damage to other people (or their stuff) as a result of your actions, at your home, and anywhere else.
In everyday speak, ‘personal liability’ means that someone is legally responsible for something. In renters and home insurance, it refers to situations of bodily injury or property damage that you’re responsible for. And finally, ‘personal liability coverage’ is something included in your renters or homeowners insurance policy which protects you if you’re legally responsible to pay for something that happened to someone else.
So when would personal liability coverage kick in?
Here are a few scenarios:
- Someone’s injured on your property, and it’s your fault
- You accidentally cause damage to someone else’s stuff, or place
- Someone (or pet) listed on your policy causes damage to someone else
If any of these three things happen, personal liability insurance covers the cost of a lawyer to defend you, and your insurance company will pay the damages you’re responsible for.
Why would someone need a lawyer?
Let’s say your dog bites your neighbor, Mike. If you don’t give Mike your insurance info (either because you’re uncomfortable doing so, or don’t have the chance to), he might hire a lawyer to send you a letter, letting you know that Mike is pursuing the claim, and will take you to court if you don’t provide your insurance info within 30 days.
Peril Policies
Named Perils
Policies: HO-1, HO-2, HO-4, HO-6, HO-8
Named perils are specific damages or losses listed in your policy – if any of these ruin something you own (aka your personal property), your coverage will kick in. Zooming out a bit, insurance is there to protect you and your stuff from sudden, unexpected events. But what’s defined as sudden and unexpected? That’s where named perils come in.
Named perils are a bunch of bad things, listed out in your policy, that could happen to your personal property. They apply to direct, physical loss or damages so, for example, if a fire broke out (a named peril) ruining your couch, TV, and computer, you could file a claim and your insurer would financially help you out.
You’ll find the named perils in the ‘Perils Insured Against’ section of your insurance policy but take note: while there are usually 16 named perils on your policy, some states have less (Texas, for example, has only 15).
The Named Perils
| Fire and Lightening | Vandalism | Explosions | Falling Objects |
| Freezing | Theft | Smoke | Volcanic Eruption |
| Windstorm and Hail | Damage by Aircraft | Damage by Vehicle | Riots & Civil Unrest |
| Sudden, accidental tearing or cracking | Sudden, accidental water overflow | Damage by shirt-circuit | Weight of ice, snow and sleet |
Open Perils
Policies: HO-3, HO-5, HO-7
Open perils is coverage for losses or damages to your stuff, and in the case of homeowners, your house – if something’s not specifically excluded, it’s covered.
“Open perils,” sometimes referred to as “all perils,” is a specific type of insurance coverage. It means that your insurance company will cover you for anything that happens to your stuff, unless it’s specifically excluded from your policy.
So if an apartment flood ruined your computer, and your policy doesn’t specifically say flooding isn’t covered, your insurance company will have to approve your claim, by default.
In-Depth View of the Policy Forms
The following path covers each of the homeowners policy forms in depth: