Division of Insurance - Homeowners Insurance

Forms or Types of Homeowners Insurance

Most homeowners’ insurance policies are based on forms developed by the Insurance Services Office (ISO) and American Association of Insurance Services (AAIS).

The following information outlines the most common homeowners’ forms sold in South Dakota. The HO policy form is a package policy that includes coverage for property and liability.

Homeowners 2 – Broad Form

Provides coverage for your home on a “named perils” basis which means that the covered perils are specifically listed in the policy.

Homeowners 3- Special Form

Provides coverage for your home for all losses unless specifically excluded. General exclusions include ordinance or law, earth movement, flood and surface water, power failure, neglect, war, nuclear hazard, and intentional acts. Personal Property is covered on a named peril basis.

Homeowners 4 – Contents Broad Form

The Contents Broad or Tenants form is for renters. It covers personal property against the same perils as the contents portion of the HO-2 or HO-3 form together with liability coverage.

Homeowners 5 – Comprehensive Form

Covers the dwelling and contents on an open peril basis. Therefore as long as the cause of loss is not specifically excluded in the policy it will be covered for that cause of loss.

Homeowners 6 – Unit-Owners Form

An owner of a condominium or cooperative unit is eligible to purchase this form provided that the unit is primarily used for a residence and does not house more than one additional family or two boarders or roomers.

Homeowners 8 – Modified Coverage Form

This form may be provided for the owner-occupied older home whose replacement cost exceeds the property’s market value and the homeowner simply wishes to recover the actual cash value of the dwelling.

Dwelling Property Form

Used primarily for residential properties that do not qualify for homeowners policies; for example nonowner occupied one to four family dwellings such as rental properties, lower valued homes, and other dwellings that do not meet the eligibility guidelines for homeowners policies. Coverage for personal property is not automatically extended as it is in the homeowners’ forms. You select an amount of insurance and a separate premium is calculated. Personal liability and medical payments coverage is available. The Dwelling form cannot be used for farm property.

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Marcia Hultman

Cabinet Secretary