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What is an HO-1 insurance policy?

An HO-1 insurance policy is what’s called a named peril policy. A peril is any event that can cause damage to your home and trigger an insurance claim. Named peril policies only cover the perils your insurance company lists; for HO-1 policies, there are 10 common perils included.

What is the difference between HO-1 and Ho-3 homeowners insurance?

HO-1: The most limited policy type for single-family homes, HO-1s generally aren’t sold by insurance providers anymore. HO-2: A more common policy type for single-family homes and a slight upgrade from the HO-1. HO-3: The most common type of homeowners insurance policy for single-family homes, with broader coverage than the HO-2.

Does HO-1 insurance cover damage?

HO-1 insurance does not offer coverage for many perils that might cause costly damage to your home and lacks liability and personal property coverage. Because the policy is so basic, many states don’t allow insurance carriers to offer HO-1 coverage.

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