Homeowners insurance policies typically cover the home and its contents, as well as liability for injuries to others or property damage. Policies are generally structured in two parts – Part I pertains to the dwelling and personal property coverage, while Part II addresses liability coverage. The following are the three standard types of coverage on Part I of a typical homeowners policy:
The basic form (HO-1) covers the house, its contents, shrubs, trees, and other outside structures such as a tool shed or garage, and it insures the same against ten major hazards such as fire and theft. Note: Some states have withdrawn it from use because it offers such limited coverage.
The broad form (HO-2) adds seven more hazards common enough to consider: hot water system leaks, plumbing, heating, air conditioning, freezing pipes, faulty electric wiring, falling objects, weight of ice, snow or sleet, or collapse of the building.
The special form (HO-3) is the most common type of coverage, and it provides more complete and extensive protection to the house, its contents, and appurtenant structures, excluding only specific disasters such as floods