The HOA Home Insurance Policy is the most basic insurance policy available to homeowners. Most homeowners that purchase HOA 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 10 perils the H0A Home Insurance Policy will protect your home and belongings from are:

Vehicle damage is typically only included if it’s not done by the insured, and theft is usually limited to just $1,000 in a standard HO1.

Other than that, if a peril from the list above damages your home or your stuff, the HO1 insurance policy should cover it after your deductible.

The HOA home insurance policy is a very basic policy. Unless endorsed by an agent, the HOA is an Actual Cash Value policy. This means the likelihood is very high that your insurance company will not cover all the costs in the event of a loss, because actual cash value policies depreciate the value of materials in a claim.

HOA home insurance policies can be endorsed to include replacement cost coverage, but it’s important to make sure you have the coverage that is right for you.

Although the HOA home insurance policy will protect you from the most common perils, there are a few common perils that are not included in the HOA policy. The most costly and most common perils not covered are:

1. Water Damage – no water damage of any any kind is typically included in a basic HOA home insurance policy. Water coverage may be endorsed onto the policy for additional premium.
2. 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.

Where does the HOA policy stand compared to other policies? It’s at the bottom. Here is a quick look at other home insurance policies and how they stack up to the H0A:

Less Coverage: None

Roughly Equivalent Coverage: HO8, HO1

More Coverage: HOA+, HO2, HO3, HO5, HOB, HOC