A private company called Insurance Services Office based in New Jersey was formed in 1971 and issued a simplified homeowners policy which is used by insurance companies. It developed standardized homeowners insurance that made it easier for the public to compare offers from different insurance companies. The seven forms of homeowners insurance are:

HO-1 : provides coverage for specific items outlined in the policy.

HO-2 : is also a limited policy that covers specific parts of the house against damages, a list of such damages or “perils” should be provided in the policy.

HO-3 : usually called “all risk” or “open perils” policy, it covers all portions of the home, the structures and items inside. It is also inclusive of liability insurance for accidents that may occur inside the premises. Limits of liability and covered items should be clearly detailed in the policy to ensure proper coverage.

HO-4 : also called the “renters’ insurance” or “renter’s coverage” which covers the tenant’s personal belongings and includes a liability insurance.

HO-5 : this is similar to HO-3 but provides coverage on a wider range of incidents and losses.

HO-6 : also known a s Condominium Coverage, and caters to owners of condominiums, and provides protection for items and incidents not covered by the building’s blanket policy.

HO-8 : also called “older home” insurance where homes with higher replacement cost than the market value are insured at a lower market value rate.