An HO8 Homeowners Policy, also known as a “modified coverage policy,” is a type of home insurance policy specifically designed for older homes. The HO8 policy is usually reserved for owner-occupied homes whose actual cash value (ACV) is less than what it might cost to replace the damaged structure. Insurers typically use HO8 forms to insure:
- Older homes, especially ones more than 40 years old.
- Registered landmarks.
- Architecturally significant homes.
- Homes constructed of hard-to-replace materials.
As a general rule, if it costs more to repair your damaged home than the home’s current market value, an HO-8 policy is probably your best option. It is a variation of the standard homeowners insurance policy, also known as an HO3 policy, and provides coverage for specific types of risks and perils. However, the coverage provided by an HO8 policy is typically more limited than that of a standard homeowners policy.
What does an HO-8 policy cover?
An HO8 policy provides coverage for a variety of risks and perils that can affect your home and personal property. Some of the specific coverages offered by an HO8 policy include:
- Dwelling and other structures: This coverage provides protection for the physical structure of your home and any other structures on your property, such as a garage or shed. It covers damage caused by perils such as fire, lightning, windstorm, hail, explosion, and smoke, but the coverage provided is typically more limited than that of a standard homeowners policy.
- Additional living expenses: This coverage provides reimbursement for any additional expenses you may incur if you are unable to live in your home due to a covered loss. This can include expenses such as temporary housing, meals, and other related costs.
- Liability coverage: This coverage provides protection against lawsuits and other legal claims if someone is injured on your property or if you are found to be legally responsible for damage to someone else’s property. It can cover costs such as legal fees, settlements, and judgments.
- Personal property: This coverage provides protection for your personal belongings and household items, such as furniture, clothing, and electronics. It covers damage caused by perils such as fire, lightning, windstorm, hail, explosion, and smoke, but the coverage provided is typically more limited than that of a standard homeowners policy.
What does HO-8 insurance not cover?
An HO-8 policy does not cover all types of damage. It typically excludes coverage for wear and tear, damage caused by pests, and certain types of water damage. It also may exclude coverage for certain types of personal property, such as high-value items like jewelry or art.
What perils does an HO-8 policy cover?
An HO-8 policy typically covers perils such as fire, lightning, windstorm, hail, explosion, and smoke. However, the coverage provided is typically more limited than that of a standard homeowners policy and may exclude certain types of damage.
What perils does an HO8 policy cover?
An HO8 policy typically covers perils such as fire, lightning, windstorm, hail, explosion, and smoke. However, the coverage provided is typically more limited than that of a standard homeowners policy and may exclude certain types of damage. For example, an HO8 policy may not cover damage caused by floods or earthquakes. Additionally, coverage for certain types of damage, such as wear and tear or damage caused by pests, may be excluded. It is always important to review your policy carefully and understand what perils are covered, as well as any exclusions or limitations.
How much does HO-8 cost?
The cost of an HO-8 policy varies depending on the value of the home and the coverage limits selected. According to the National Association of Insurance Commissioners (NAIC), the countrywide average yearly cost for an HO-8 policy is $1162, or $97 per month. However, the cost can vary depending on the value of the home.
| Insurance Range | Average Yearly Premium | Average Monthly Premium |
|---|---|---|
| $49,999 and under | $349 | $29 |
| $50,000 – $74,999 | $676 | $56 |
| $75,000 – $99,999 | $873 | $73 |
| $100,000 – $124,999 | $1,015 | $85 |
| $125,000 – $149,999 | $1,196 | $100 |
| $150,000 – $174,999 | $1,505 | $125 |
| $175,000 – $199,999 | $1,781 | $148 |
| $200,000 – $299,999 | $2,044 | $170 |
| $300,000 – $399,999 | $2,013 | $168 |
| $400,000 – $499,999 | $1,856 | $155 |
| $500,000 and over | $1,892 | $158 |
Difference between an HO-8 and HO-3 policy?
An HO-8 policy is a variation of the standard homeowners insurance policy, also known as an HO-3 policy. The main difference between the two is that an HO-8 policy provides more limited coverage than an HO-3 policy, particularly for certain types of damage and personal property.
Difference between an HO-6 and HO-8 policy?
An HO-6 policy is a type of insurance specifically designed for condominiums or co-op apartments. It provides coverage for personal property and liability, but not for the structure of the building. On the other hand, an HO-8 policy is specifically designed for older homes and provides coverage for the structure of the home, as well as personal property and liability, but typically with more limited coverage than a standard homeowners policy (HO-3).
Does HO-8 offer replacement cost?
An HO-8 policy may offer replacement cost coverage, but it is typically more limited than that of a standard homeowners policy. Replacement cost coverage pays to repair or rebuild your home, up to the coverage limit, if it is damaged or destroyed by a covered peril. However, the coverage provided by an HO-8 policy is typically more limited than that of a standard homeowners policy and may exclude certain types of damage.
Who needs HO-8 insurance?
HO-8 insurance is typically recommended for older homes that may not meet the underwriting guidelines of a standard homeowners policy. It is also a good option for homes that have unique or historical features that may not be covered under a standard policy. Additionally, it may be a good option for homeowners who are looking for more affordable insurance coverage, as HO-8 policies tend to be less expensive than standard homeowners policies. However, it is important to note that the coverage provided by an HO-8 policy is typically more limited than that of a standard policy, so it may not be the best option for homeowners who want comprehensive coverage.
