Every home tells a story, and your insurance should fit yours. From first-time buyers to long-time homeowners, knowing the types of home insurance available helps you protect your property, your belongings, and your peace of mind. This guide breaks down the different types of home insurance, what each one covers, and how to find the policy that fits your lifestyle and budget.

The Main Types of Home Insurance Policies

Not every home is the same, and neither are the home insurance policies available for protection. The different types of home insurance policies (often labeled HO-1 through HO-8) represent levels of coverage, ranging from basic to comprehensive protection.

Policy Type	What It Covers	Real-World Example	Best For / Key Notes
HO-1: Basic Form	Covers only a limited list of named perils such as fire, lightning, smoke, theft, and vandalism.	A small, older rental property that doesn’t require extensive protection but still needs minimal coverage against basic hazards.	Rarely offered today. Provides the least coverage but the lowest premiums. Best for low-value homes or minimal-risk properties.
HO-2: Broad Form	Expands on HO-1 by adding more perils such as falling objects, freezing pipes, weight of snow/ice, and accidental water damage.	A modest starter home where affordability matters, but you still want protection from common Texas weather events.	Offers balanced protection at a budget-friendly price. A step up from HO-1 for basic homeowners.
HO-3: Special Form	Covers your home on an open-perils basis (everything not excluded) and your belongings for named perils. Includes coverage for fire, theft, storms, and more.	A homeowner in Missouri with a single-family home who wants strong, flexible protection against most risks.	Most popular and widely recommended policy. Great for standard homeowners needing full structure and contents protection.
HO-5: Comprehensive Form	Covers both home and belongings on an open-perils basis, offering the broadest protection available. Includes accidental damage and higher coverage limits.	A Tennessee homeowner with a new or high-value property who wants complete coverage with fewer exceptions.	Ideal for high-value or newly built homes. Higher cost, but fewer coverage gaps. Often includes replacement cost for personal items.
HO-6: Condo Insurance	Covers the interior of the condo (walls-in), personal property, and liability, complementing the condo association’s master policy.	A condo owner whose HOA covers the building exterior but not interior damage from leaks or theft.	Required for most condo owners. Protects upgrades like flooring, cabinets, and fixtures.
HO-7: Mobile or Manufactured Home Insurance	Similar to HO-3 coverage but tailored for mobile/manufactured homes. Covers both structure and personal property.	A Texas resident living in a double-wide manufactured home who wants protection from storms and theft.	Specifically for mobile homes. Some insurers require the home to be permanently installed on a foundation.
HO-8: Modified Coverage Form	Covers older or historic homes where replacement costs exceed market value. Focuses on repair cost or functional replacement.	A 1920s home in Tennessee, where custom woodwork or outdated wiring makes full replacement cost impractical.	Tailored for older or historic homes that would cost more to rebuild than their actual market value.

Which Type of Home Insurance Covers Homes, Land, and Other Structures?

A common concern among homeowners is whether or not home insurance covers land, and in most cases, it does not. Your policy covers the structures built on your land, but not the land itself.

While your house and other structures receive protection, the land itself is not a part of standard homeowners coverage. Here’s a quick look at how that works:

Coverage Type	Protects Land?	Protects Structures On Land?
Dwelling	No	Yes
Other Structures	No	Yes
Land Value	Not Insurable	N/A

But remember, to ensure that you have protection for your detached garages, fences, or sheds, you’ll want to make sure Other Structures Coverage is included in your policy.

Choosing the Best Type of Home Insurance for Your Situation

Every homeowner’s needs are different. Here’s how to find the best type of home insurance for your life:

For First-Time Homeowners

The HO-3 Special Form offers broad protection without high premiums. It’s a smart starting point for new buyers who want balanced coverage.

For High-Value Homes or Luxury Properties

The HO-5 Comprehensive Form is ideal. It includes open-perils coverage for your home and belongings, ensuring top-tier protection.

For Condo Owners

Choose an HO-6 policy that protects personal property and covers damage inside your unit. The condo association’s policy usually covers the building itself.

For Older Homes

An HO-8 policy uses realistic replacement costs and flexible repair rules, helping you insure homes with unique materials or historical details.

For Landlords or Secondary Homes

A DP-3 policy provides coverage for rental or vacation properties, protecting both the structure and potential loss of rental income.

No matter your situation, the right coverage depends on your home’s age, value, and location, and your comfort level with financial risk.

Compare Types of Home Insurance and Find the Right Coverage

Once you understand the different types of home insurance, the next step is finding the right protection at the right price. Here’s how to save without sacrificing coverage:

• Compare home insurance quotes from multiple carriers.
• Bundle home and auto insurance for discounts.
• Raise your deductible to reduce monthly premiums.
• Review your policy annually to match life changes.
• Work with an independent broker who shops for you.

At Free The Insurance, we partner with top-rated carriers to help you balance cost and coverage. Proudly serving Texas, Colorado, Missouri, and Tennessee, we help clients save up to 40%. Get a home quote and protect what matters most.

Sources:

NAIC. Accessed December 2025.