What is HO-2 Insurance?
HO-2 insurance, also known as “Broad Form”, provides coverage for your home against a specific list of risks (Named Perils). It covers:
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Dwelling: Your home’s structure, including roof, walls, foundation, and attached structures like garages or patios.
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Other Structures: Detached structures such as sheds, fences, detached garages, or pools.
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Personal Property: Belongings like clothing, furniture, and electronics.
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Liability Protection: Covers you if someone is injured on your property or you accidentally damage someone else’s property.
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Additional Living Expenses: Pays for temporary housing if your home becomes uninhabitable due to a covered loss.
Typical Named Perils in HO-2: Fire, lightning, windstorm, hail, explosion, riot, aircraft or vehicle damage, smoke, theft, vandalism, falling objects, ice or snow damage, water or steam leaks from plumbing, HVAC or appliances, and electrical surge.
What HO-2 usually does not cover:
What HO-2 usually does not cover:
Flood,
earthquake,
mold,
pests,
normal wear and tear,
war, or intentional damage.
Optional add-ons may be available for certain excluded risks.
What is HO-3 Insurance?
HO-3 insurance, or “Special Form”, is the most common home insurance policy in the U.S. It offers Open Perils coverage for your dwelling and other structures, meaning everything is covered unless specifically excluded. Personal property is covered on a Named Perils basis.
Coverage includes:
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Dwelling & Other Structures: Protects your home and detached structures up to the replacement cost (RCV).
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Personal Property: Covers your belongings against listed perils, with limits on items like cash, jewelry, and certain valuables. Additional coverage can be added for high-value items.
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Liability & Medical Payments: Protects you if someone is injured on your property, covering medical costs, legal fees, and more.
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Additional Living Expenses: Pays for temporary housing, meals, and other necessary costs if your home is uninhabitable due to a covered loss.
Typical Named Perils for personal property:
Fire, lightning, windstorm, hail, explosion, riot, theft, vandalism, falling objects, ice/snow, water leaks, electrical surge.
Exclusions:
Flood, earthquake, hurricanes, mold (unless added), normal wear and tear, pets, intentional damage, and government actions.
HO-2 vs HO-3: Key Differences
The main difference lies in how your property is protected:
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HO-2: Named Perils – only covers losses explicitly listed in the policy.
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HO-3: Open Perils – protects the home and structures from all risks except those specifically excluded; personal property is still Named Perils.
HO-3 typically provides more comprehensive protection, including limited medical payment coverage for guests.
Choosing the Right Policy
Coverage and premiums vary by insurance company. Compare options to find the best fit for your home and needs.
Contact Us
Need personalized home insurance quotes or more details about HO-2 and HO-3 policies? Contact us today:
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Phone: 929-200-7152
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WeChat: 9292007152
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Email: help@jnzinsurance.com
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Office: 73 Cuttermill Road, Great Neck, NY 11021
