Homeowners Insurance Summarized
The following is a list of various types of homeowner and dwelling policies available. There are no fixed rules on each designation - every company creates their own policy that generally conforms to this list, but there may be differences in coverage and in perils excluded from coverage.
- DP1 - A basic policy that provides coverage on a home - fire and lightning are covered. This type of policy is typically issued on 3 or 4 family homes, houses of non-standard construction, or very old homes. Any additional protection - such as other perils, contents, "other structures" (detached garages, gazebos, sheds, etc.), loss of use, and liability - are options that are offered only at the discretion of the insuring company.
- DP2 - A more advanced (broad, in industry parlance) policy that provides coverage on a home - fire and lightning are covered, as are a listing of several other perils, as well as theft and vandalism. Any additional protection - contents, "other structures" (detached garages, gazebos, sheds, etc.), loss of use, and liability - are options that are offered only at the discretion of the insuring company.
- DP3 - This provides "all risk" coverage on the home with some perils excepted, and therefore provides the most comprehensive insurance. Any additional protection - such as other perils, contents, "other structures" (detached garages, gazebos, sheds, etc.), loss of use, and liability - are options that are offered only at the discretion of the insuring company.
- HO1 - A basic policy that provides coverage on a home - fire and lightning are covered. Contents are generally included in this type of coverage, as are "other structures" (detached garages, gazebos, sheds, etc.), loss of use, and liability.
- HO2 - A more advanced (broad, in industry parlance) policy that provides coverage on a home - fire and lightning are covered, as are a listing of several other perils, as well as theft and vandalism. Contents are included in this type of coverage, as are "other structures" (detached garages, gazebos, sheds, etc.), loss of use, and liability.
- HO3 - The standard policy issued for 1 and 2 family homes. This provides "all risk" coverage on the home with some perils excepted, and therefore provides the most comprehensive insurance. Contents are included in this type of coverage, as are "other structures" (detached garages, gazebos, sheds, etc.), loss of use, and liability.
- HO4 - A policy used for tenants in apartments, multi-family homes, etc. Principal coverages include contents and liability.
- HO6 - A policy that used for a condominium. This type of policy is based upon the assumption that the condominium building is insured by the overall organization that runs the complex. Principal coverages include contents, assessed by the association for shared losses, and liability.
- HO8 - A variation of the standard homeowner-s policy that provides for replacement at actual cash value. This is sometimes used for higher value homes that have unique features, such as ornate moldings, that cannot be effectively replaced with modern construction techniques or materials.