The Different Levels of Homeowners Insurance and Who They’d Best Suit

The Different Levels of Homeowners Insurance and Who They'd Best SuitWhen customers go looking for the right homeowners insurance policy for their household, their first step is learning about all of the different types of homeowners insurance that’s available. Homeowners insurance, according to the Insurance Information Institute, is a package policy meant to cover property damages as well as liability and legal issues if they happen to arise. While homeowners insurance is a fairly ubiquitous coverage, it’s a common misconception that all polices are the same. There are distinct varieties of homeowners insurance, all of which have different amounts of coverage and would be best-suited to different homes and homeowners. While homeowners insurance ranges from HO-1 to HO-8, these are the three main types that are most likely to impact homeowners such as your clients.


Also known as a broad form policy, HO-2 is a pretty standard and basic type of home insurance coverage. It covers everything that its predecessor HO-1 does and a little bit more. Some other things that it covers include:

  • Falling objects,
  • Snow or sleet,
  • Freezing of household systems such as AC or heater,
  • Damage done by electric currents ,and more.

HO-2 not only covers the structure, but it can also cover what’s inside the home as well. It’s important to communicate to clients that HO-2 is a “named peril” policy, meaning that whatever isn’t listed on the contract is excluded from your coverage.


Also known as a special form policy, HO-3 is basically a revamped, fancier version of the HO-2. This one is also the most common type of homeowners insurance. It covers everything that a HO-2 does and a little bit more than that. One big difference between the two is that an HO-3 is not a named peril, meaning that it often offers more protection than a HO-2 policy can. An HO-3 policy insures the home and attached structures like a garage or shed, and then it also insures the belongings in it.

However, one thing to note is that earthquakes and floods are generally not covered on this type of policy.


This is a comprehensive form policy covers much more than an HO-2 and HO-3 policy while still operating like an HO-3 policy. Another open-peril policy, this provides homeowners with more protection from this insurance than other types of policies. HO-5 can keep homeowners safe from all types of peril except for the ones that are directly listed in writing. In addition, an HO-5 typically covers more when it comes down to personal belongings, which is why people tend to choose it for their high end home insurance coverage.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.