What is HO-1?
HO-1 insurance is a basic form of homeowners insurance that provides limited coverage for specific perils. Often referred to as a “named perils” policy, HO-1 only protects against risks explicitly listed in the policy. This type of coverage is becoming less common, but it can still be suitable for certain homeowners seeking minimal protection.
Who needs it
HO-1 insurance may appeal to property owners looking for affordable, minimal coverage—such as landlords with vacant properties, homeowners in low-risk areas, or individuals with older homes they intend to renovate. It may also be considered by those who already have separate policies for liability and additional property risks.
What it typically covers
HO-1 policies generally cover a limited set of perils. These commonly include:
- Fire or lightning
- Windstorm or hail
- Explosion
- Vandalism or malicious mischief
- Theft
- Smoke damage
- Vehicle or aircraft impact
This coverage typically applies to the structure of the home, not the contents or liability exposures. For broader protection, homeowners often consider other forms such as HO-3 policies, which cover more perils and include personal property and liability protection.
Common exclusions or limitations
Because HO-1 is a named perils policy, anything not specifically listed is excluded. Common exclusions include:
- Water damage (including floods or sewer backup)
- Earthquakes
- Personal liability coverage
- Coverage for personal belongings
It’s important to review what’s not included, especially if your home faces regional risks like flooding or earthquakes. For example, if a windstorm causes a tree to fall on a neighboring house, you might lack the liability coverage needed to respond.
Factors that influence cost
Several underwriting factors affect the cost of an HO-1 policy, including:
- Location and local weather risks
- Age and construction of the home
- Security features (like alarms or deadbolts)
- Previous claims history
Because HO-1 offers less coverage, it’s usually more affordable than broader forms like HO-A insurance or HO-B insurance, but it also leaves more financial gaps in the event of a loss.
Proof of insurance & compliance
Some mortgage lenders no longer accept HO-1 policies because of their limited coverage. If you're using a mortgage, you may be required to purchase a more comprehensive policy to meet lender requirements. If you own your home outright, you may still want to consider the risk management implications of such limited protection.
How to get a quote
Given the limited availability of HO-1 policies today, it’s best to discuss with an agent whether this type of coverage fits your risk profile. They can help you compare it with other options and explain what exclusions may apply based on your location and property type.
Frequently Asked Questions
Is HO-1 insurance still available?
It is available in some areas, but many insurers have phased it out in favor of broader policies like HO-3.
Does HO-1 cover personal belongings?
No, standard HO-1 policies typically do not cover personal property inside the home.
Can I add liability coverage to an HO-1 policy?
Some insurers may allow endorsements for liability, but it's not included by default. It's important to ask your agent.
Will my mortgage lender accept HO-1 insurance?
Many lenders require more comprehensive coverage, so HO-1 may not meet their insurance standards.
What’s the difference between HO-1 and HO-6 insurance?
HO-1 covers standalone homes with limited perils, while HO-6 insurance is designed for condo and co-op owners and includes interior unit coverage and personal property.
Still have questions? Talk to a local insurance expert.