What is HO8?

HO-8 is a homeowners insurance form designed for older or low-market-value homes where replacement cost coverage would significantly exceed the property's market value. Instead of paying to fully replace damaged materials, an HO-8 policy typically pays actual cash value — replacement cost minus depreciation — for covered losses. It addresses basic property coverage and limited liability exposure for homes that don't fit standard HO-3 underwriting profiles.

Who needs it

HO-8 is most often used by owners of aging houses with original features, obsolete construction materials, or homes in areas where rebuilding costs are higher than market value. Typical buyers include small landlords, individual homeowners of historic or older properties, and some members of neighborhood associations that maintain older housing stock. For a focused overview of how HO-8 applies to lower-value properties, see Low Value Homeowners HO-8 (Personal Lines).

What it typically covers

HO-8 policies generally include:

• Limited dwelling and other structure coverage based on actual cash value
• Personal property coverage with depreciation applied
• Liability protection for bodily injury or property damage to third parties
• Additional living expenses if the home becomes uninhabitable after a covered loss (subject to limits)

Coverage is narrower than standard HO-3 policies, so it’s important to compare limits and perils carefully. A common risk scenario is that older wiring might cause a fire and a settlement would reflect depreciation rather than full replacement.

Common exclusions or limitations

HO-8 forms frequently exclude or limit coverage for:

• Floods and routine wear-and-tear
• Modern systems or additions that were not present at underwriting
• High-value collections or upgrades that exceed policy limits
• Certain types of water damage or mechanical breakdowns

Policies may also include specific underwriting factors that restrict coverage for known defects or deferred maintenance.

Factors that influence cost

Premiums for HO-8 depend on the home’s age, construction type, condition, location, and claims history. Underwriting factors such as roof condition, electrical and plumbing systems, and the presence of safety features can all affect price and eligibility. Insurers will consider depreciation, replacement cost estimates, and liability exposure when setting rates.

Proof of insurance & compliance

Mortgage lenders and some local authorities may require proof of insurance even for older homes. Your policy declarations page is the standard proof of coverage. If you have special risk management needs—for example, rental use or a homeowners association requirement—make sure your declarations reflect those uses and any additional endorsements you may need.

How to get a quote

To compare options and find an HO-8 policy suited to an older dwelling, gather basic details about the property (age, square footage, recent improvements, and known issues) and request quotes. You can also talk to your agent for help selecting limits, adding needed endorsements, or weighing alternatives such as a modified HO form or a dwelling fire policy.

Frequently Asked Questions

Still have questions? Talk to a local insurance expert.