Types of Homeowners Insurance You Need to Know

home insurance in washington NC

Got your new home ready? Complete the process by purchasing the best possible Homeowners Insurance policy you need.

We have to say, buying a home requires a lot of time and effort. We also put a lot of effort into searching for a well-built home around the area. Homeowners insurance, on the other hand, demands greater thought because getting the correct coverage for your house, it can save you a good deal of money in the event of a severe calamity.

This article will cover several reasons why you should get a Homeowners Insurance in Washington, NC right now and what are the different types of insurance you need to know. Whatever your situation is, it’s possible to find a suitable insurance policy for your needs.

Why You Need Homeowners Insurance

A homeowners insurance policy is a legally binding agreement between you and your insurance company. It outlines what the insurer agrees to do in exchange for the fee you pay. It also outlines your obligations as well as the terms of coverage.

Homeownership is a huge achievement, and it’s critical to protect your investments with homeowners insurance coverage.

A homeowners insurance policy covers the cost of repairing or replacing your home and damage caused by:

  • fire,
  • smoke,
  • water,
  • theft,
  • vandalism,
  • storm,
  • or another covered disaster specified in the policy.

Aside from assisting you to pay to rebuild or repair your home, your house insurance can also replace your personal items. This can cover the costs of a temporary place to live if it is damaged or destroyed. Finally, a liability component of a home insurance policy may give coverage if you’re sued for bodily injuries inflicted on your property or other covered events.

Knowing the basics of homeowners insurance coverage is essential whether you’re purchasing your first policy or updating an existing one. You should be aware of the many forms of home insurance available before making an informed decision.

Types of Homeowners Insurance

As professionals, we understand how perplexing insurance can be for customers. It’s crucial to know what type of coverage you want and what deductible limitations you can afford. 

Before deciding on a home insurance policy, educate yourself first about these different types of homeowners insurance you need to know.

HO-1 Policy / Basic Form

This is a basic home insurance policy that covers your home and personal items in limited conditions. This often comprises the following identified perils:

  • Windstorms and hails
  • Theft 
  • Vandalism
  • Damage from natural disasters like lightning and fire
  • Damage from aircraft or vehicles
  • Explosions
  • Smoke
  • Riots
  • Volcanic eruptions

When you have this policy, your home and personal items are insured at their actual cash worth. Unfortunately, some insurance companies no longer provide this policy.

HO-2 Policy / Broad Form

A broad form HO-2 policy is more typical than an HO-1 policy. It is a significant step up over the basic form policy. An HO-2 policy covers the dwelling — your home structure — at its replacement cost worth and your personal property at its actual cash worth. An HO-2 also protects your home and personal items from six other listed perils, such as damage caused by:

  • Weight of ice, snow, or sleet
  • Freezing
  • Accidental discharge or overflow of water or steam
  • Sudden and accidental tearing apart, cracking, burning, or bulging from some household systems
  • Sudden and accidental damage from certain artificially generated electrical currents, like power surges
  • Volcanic eruption

In some cases, liability coverage is sometimes included in HO-2 policies. Contact your insurance company directly to find out if your HO-2 policy provides liability coverage.

HO-3 Policy / Special Form

The most common and popular type of homeowners policy is the HO-3 policy or what is also called the special form. This is because this form has a good balance between comprehensive coverage and reasonable premiums. As a matter of fact, according to National Association of Insurance Commissioners data from 2017, 79 percent of homeowners policies issued are actually HO-3 policies.

Your house will also receive significantly more coverage. The HO-3 policy provides all-risk protection for your home and other structures. That is, it covers all types of loss or damage with the exception of those listed as exclusions in the policy. Among them are the following:

  • Defective maintenance or construction 
  • Mechanical breakdowns
  • Foundation issues
  • Vandalism, frozen pipes, and theft in any vacant houses
  • Mold, fungus, or wet rot
  • Wear and tear
  • General neglect 
  • Animal or pet damage
  • Corrosion and pollution
  • Government actions
  • War
  • Nuclear hazard 

It also includes coverage for personal liability, medical expenses, and loss of use.

HO-4 Policy / Contents Broad Form

HO-4 insurance, sometimes known as renters insurance, is coverage designed exclusively for those who rent rather than own a home. Considering that renters do not own their house, the structure of the building is not covered. Rather, the property owner’s insurance policy will be applied.

An HO-4 form’s coverage is often limited to the following perils:

  • Damage from natural disasters like lightning and fire
  • Damage from aircraft or vehicles
  • Damages as a result of an electrical current
  • Damage from snow or ice
  • Damage as a result of a water heater
  • Water damage from an HVAC overflow or from plumbing issues
  • Falling objects
  • Explosions
  • Vandalism, frozen pipes, and theft
  • Windstorms and hail
  • Riots
  • Smoke

The majority of renters insurance coverage protects your things wherever in the world. Personal liability, loss of use, and medical costs coverage are included as well.

HO-5 Policy / Comprehensive Form

The most strong kind of single-family home protection is comprehensive homeowners insurance, as the name implies. It offers the greatest and most comprehensive coverage available. The HO-5 policy is fairly similar to HO-3, but there are a few distinctions to note:

  • Dwelling and personal property are insured at their replacement cost by default. 
  • All-risks coverage for both your home and personal belongings.
  • High coverage limits for expensive types of property with normally strict coverage limits, including jewelry, fine furs, and certain electronics.

HO-5 policies are usually reserved for high-value homes in high-risk areas. HO-5 is for properties that require additional coverage.

HO-6 Policy / Condo Form

This is a type of homeowner’s insurance for people who live in a condominium or co-op. The amount of coverage you get for your home depends on what is already covered by your condo association’s HOA insurance, generally known as the ‘Master Policy’.

Most insurance companies include coverage for personal liabilities, medical expenditures, and additional living expenses in addition to protection for your personal assets. Condo insurance also includes loss assessment coverage, which is designed to cover common area losses in an HOA property.

HO-7 Policy / Mobile Home Form

Mobile home insurance is essentially an HO-3 policy tailored to mobile homes that are not covered by a standard single-family home policy.

HO-7 insurance cover, but are not limited to, the following types of mobile homes:

  • Trailers, travel trailers, fifth-wheel trailers
  • Sectional homes
  • Modular homes
  • Park model homes and RVs
  • Single-wide manufactured and single-wide mobile homes
  • Double-wide manufactured and double-wide mobile homes

Mobile houses are classified as personal property rather than real property in many jurisdictions across the United States. Knowing its classification in your location may assist you in selecting HO-7 insurance coverage.

HO-8 Policy / Modified Coverage Form

The last type of policy, often known as old home insurance, is for homes that are too old to qualify for most other types of homeowners insurance without significant renovations.

This coverage also enables you to maintain the old property in the same condition as it was several generations ago. This policy covers only 0.46 percent of all houses.

This coverage insures the actual cash worth of your home and personal items. Furthermore, you will not be offered a replacement-cost endorsement option by most businesses. Given that many of the assets in question could be decades or even centuries old, this makes it reasonable.


Yes, it takes a lot of thought and searching around to get the coverage that best suits your needs. Don’t worry because it’s all gonna be worth it in the end. 

Protecting your property’s contents is critical for long-term home health and it can help you avoid a financial setback if a big repair happens. You can make sure you’re choosing the ideal option for your needs by considering factors like market rates, customer service, coverage amounts, and cost.

At Harbour Insurance, we take quick actions for our client’s needs when they are ready. We are a highly reputable homeowners insurance company that provides the appropriate amount of coverage. We work at experts and reliable connections to ensure you stay in a safe and protected home. Whether you are in the Mountains, Piedmont, or Coastal Plains region of our state, we have you covered.

Homeowners, Dwelling, Flood, Wind/Hail, and Earthquake are just some of the types of products that we offer to protect your home. Make an appointment today to discuss how to best insure your home in Washington, NC!


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