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HO1 Home Insurance Policy
The HO1 Home Insurance Policy is the most basic insurance policy available to homeowners. Most homeowners that purchase HO1 insurance are insuring for catastrophic losses only. The HO1 home insurance policy only protects the home and contents for the most common perils that occur.
The HO1 Home Insurance Policy is a Named Perils Policy
The HO1 insurance policy is a named perils home insurance policy. Named perils policies specifically list the perils that are covered by your homeowner insurance. If something happens to your home or belongings that is not on the list of covered perils, you do not have coverage under the HO1 home insurance policy.
Perils Insured Against with the HO1 Home Insurance Policy
The 10 perils the HO1 Home Insurance Policy will protect your home and belongings from are:
- Fire or Lightning
- Windstorm or Hail
- Riot or Civil Commotion
- Vehicles(unless caused by the insured)
- Vandalism or Malicious Mischief
- Theft (limit of liability on HO1 is usually $1,000)
- Volcanic Eruption
HO1 Home Insurance Can Be Replacement Cost or Actual Cash Value
The HO1 home insurance policy is normally a replacement cost policy. However, because of the fact that the HO1 is the most basic homeowner protection available, you need to make sure you know whether the policy is Replacement Cost or Actual Cash Value policy. Understanding this difference could mean the difference between your insurance company covering your entire loss versus just a portion of your loss.
Important Perils the HO1 Home Insurance Policy May Not Cover You For
Although the HO1 home insurance policy will protect you from the most common perils, there are a few common perils that have no coverage in an HO1 policy. The most costly and most common perils not covered include:
- Water Damage - no water damage of any kind is typically included in a basic HO1 home insurance policy. Water coverage may be endorsed onto the policy for an additional premium.
- Falling Objects - no coverage is provided for objects falling on your home and contents, unless you can prove the objects fell on your home as a result of one of the ten perils listed above.
Similar Home Insurance Policies
The HO1 insurance policy is very similar to two other home insurance policies you can purchase: the HOA and the HO8.
HOA: The HOA insurance policy is nearly identical to the HO1 policy. It is a named perils policy that only protects the home and belongings from the 10 same specific perils listed here. Unlike the HO1, however, the HO2 is normally an actual cash value policy, unless endorsed to be replacement cost, as is the case with an HOA+ policy.
HO8: The HO8 policy is also nearly identical to the HO1 home insurance policy. It is a named perils policy that only protects the home and contents from the same 10 specific perils. The HO8 is not a replacement cost policy, but insures the home for market value. This policy is most commonly used for very old homes.