What kind of homeowners insurance do I need? Here are Florida's 8 types of home insurance

Lianna Norman, Palm Beach Post
·4 min read
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A resident makes repairs on his trailer home at Briny Breezes.

If you’re one of the many Floridians shopping for a new home insurance policy during Florida’s insurance crisis, you need to know a few key terms to help you choose the best possible policy for your home and budget.

Here’s a breakdown of the different types of home insurance policies available in the state of Florida.

What is homeowners’ insurance?

Homeowners’ insurance is a type of property insurance that covers damage or loss by theft and damages from disasters like storms — not including flooding — and fires. Mortgage lenders typically require homeowners’ insurance as part of their mortgage terms.

Basically, if you just bought or already own a house in Florida, you probably need homeowners’ insurance. But there isn’t just one kind of insurance for homeowners. You can insure just your house, your house and all of the other structures on your property and even your tenants, if you’re a landlord.

Here are the different components of home insurance as listed by the Florida Office of Insurance Regulation:

  • Coverage A: Structure (the dwelling itself)

  • Coverage B: Other structures (sheds and fences)

  • Coverage C: Personal property (contents of the structures)

  • Coverage D: Loss of use (Additional Living Expense or ALE)

  • Coverage L: Personal Liability

  • Coverage M: Medical Payments to Others

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There are the 8 types of homeowners’ insurance you can buy in Florida

  • HO-1, Basic form: This is the most basic type of homeowners’ insurance you can buy. Since insurance plans that offer more coverage are only slightly more expensive than this basic plan, many home insurers choose not to carry HO-1 policies, according to the Florida Office of Insurance Regulation. HO-1 policies only cover damages on this list:

    • fire or smoke

    • Explosions

    • Lightning

    • hail and windstorms

    • Theft

    • Vandalism

    • damage from vehicles

    • damage from aircraft

    • riots and civil commotion

    • volcanic eruption.

  • HO-2, Broad form: HO-2 policies cover the same damages, or perils, that HO-1 policies cover, but extend coverage to personal belongings, covering accidental discharge or overflow of water or steam, falling objects, freezing of household systems like AC or heating, sudden and accidental damage from an artificially generated electrical current, sudden and accidental tearing apart, cracking, burning, or bulging of pipes and other household systems, as well as weight of ice, snow, or sleet. Some HO-2s cover personal liability as well.

  • HO-3, Special form: Unlike Ho-2 and Ho-1 policies, HO-3 policies cover damages that are not listed. HO-3s are open-peril policies, meaning unless the insurer excludes a peril from the policy, then the policy covers any kind of peril, listed or not. Although, most insurers exclude flooding and earthquake damages from HO-3s. HO-3s only include the home itself.

  • HO-4, Tenant: Most HO-4 policies cover the same named damages that HO-2 policies cover. HO-4s are known as renters insurance and provide coverage for tenants who want insurance. “The purpose of this kind of policy is to protect items within the dwelling, as well as any permanent fixtures like cabinets that were installed by the renter,” according to the Florida Office of Insurance Regulation.

  • HO-5, Comprehensive form: Like HO-3s, HO-5s are open-peril policies and can cover a variety of damages not specifically listed in the policy. The key difference is that HO-5s extend coverage beyond the home itself, to include personal items and have higher limits of coverage for more valuable belongings.

  • HO-6, Condominium: HO-6 policies are for condominium owners who want to insure their unit and personal belongings against damages, excluding flooding. Condo building associations typically have coverage for the building, but condo owners are responsible for anything inside their unit. According to Florida’s Office of Insurance Regulation, HO-6 policies generally provide coverage for building property, personal property, personal liability and loss of use.

  • HO-7, Mobile home form: HO-7s are similar to HO-3 policies. They’re typically open-peril policies and cover homes like RVs, trailers, sectional homes, and single-wide and double-wide mobile homes.

  • HO-8, Older home form: HO-8 policies usually cover homes that are at least 40 years old. Insurance companies usually use this type of home insurance to offer affordable coverage to people who own older homes because the building materials needed to repair old homes are often more expensive than the homes themselves. HO-8s are named-peril policies that cover the same damages listed in HO-1 policies, including coverage for personal property, liability, and loss of use from named perils.

Lianna Norman covers trending news in Palm Beach County for The Palm Beach Post. You can reach her at lnorman@pbpost.com. You can follow her reporting on social media @LiannaNorman on Twitter.

This article originally appeared on Palm Beach Post: Florida homeowners insurance policies depend on type of home. A guide