Division of Insurance - Homeowners Insurance

Forms or Types of Homeowners Insurance

The insurance industry uses the word "form" to describe the different types of insurance policies they sell. The following information outlines the five common "forms" or types of homeowners insurance sold in South Dakota.

Basic Form (HO1)

This protects your home and your personal property, such as furniture, carpeting, personal effects, etc. The hazards generally covered are fire, lightning, windstorm, hail, explosion, vandalism (or malicious mischief), damage by vehicles, aircraft and riots. Form HO1 provides only basic insurance, covering your home against only those hazards that are listed that could cause serious financial hardship.

Home Policy Form (HO2)

In addition to the benefits of HO1, the HO2 also insures a home and personal property for collapse or damage from the weight of ice and snow, falling trees, and other objects, and (under certain conditions other than flooding) from steam or water damage. The HO2 form also covers some kinds of damage covered by faulty electrical equipment. The HO2 is sometimes referred to as the broad form, but it provides less coverage than the HO3.

Special Form (HO3)

This covers your home against substantially "all types of losses" that can happen except for some specified exclusions. The exception includes flood, surface water, sewer backup, tidal wave, earthquake, landslide, war and nuclear radiation. However, the HO3 form covers your personal property only for the same hazards as are covered by the HO2 homeowners policy.

Renters Form (HO4)

This is the packaged coverage for renters. It protects personal property against the same hazards as the HO2.

Condominium Form (HO6)

Some insurance companies offer the Condominium Coverage (HO6) to condominium unit owners. In addition to the usual coverages provided under the HO4, it offers special protection needed by owners of condominium units.

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Marcia Hultman

Cabinet Secretary