Homeowners insurance and life insurance are probably the two most important policies you’ll ever purchase. Both of them offer necessary financial protection and scale in price based on how comprehensive their coverage is. Similar to other types of insurances, homeowner policies are of different types and provide a varying range of benefits.

In this blog, we’ll highlight the main differences between each policy and the benefits they provide.


HO-1 provides the most basic level of coverage. It covers homes from damages resulting from hail and windstorms, fire and lightning, vandalism, civil commotion, theft, explosions, and volcanic eruptions.


Referred to as a broad policy, it covers all the aspects of HO-1 and some more. The additional ones include damage caused by falling objects, water damage resulting from household appliances, air conditioners, and plumbing systems. This policy is also referred to as a “peril policy” and also encompasses personal property.


HO-3 is the most purchased policy form due to the broad coverage it provides. It includes all 16 perils covered by the previous policies and more except for the ones specifically excluded (sinkholes, nuclear accidents, mudslides, landslides, floods, and earthquakes).

It is important to note that an HO-3 policy covers the home against damages included in an HO-2 but nothing more. For example, if a house and all of its belongings are completely destroyed by a fire. The HO-3 policy will pay for the belonging and structure as well as everything else to the extent of the policy. However, if a home and all of its belongings are destroyed by falling objects or water damages, then the policy will only pay for the structure and not the personal belongings.

This is because water damage is different from flood damage and requires a separate flood insurance policy to be purchased.


Also referred to as a renter’s insurance, HO-4 protects the tenant’s belongings that are not secured by the original landlord’s homeowner insurance. The policy also includes any additional furniture the tenant installed in the rented home.


Similar to an HO-3, an HO-5 policy covers a broad range of perils. The difference between the two is that HO-5 also covers every peril not listed as the exclusion. Being far more comprehensive, HO-5 is relatively expensive when compared with other policies.


This policy is for condo owners and allows for those items to be insured that are not covered by any policy under the condo association. HO-6 also covers personal belongings that are inside individual units.


A unique policy that is purchased for older homes that have replacement costs far higher than their actual value. For this reason, this policy is well-suited for registered landmarks as well as architecturally important structures.

It’s important to choose the right policy based on your home size, location, age, and other factors. B&M Success Insurance Agency provides affordable home insurance in Roseville, California to homeowners looking to protect their house from expected and unexpected disasters. Contact us today for more information.

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