Beyond basic coverage, there are at least seven different types of homeowners insurance, and the rates are generally higher for more comprehensive plans. Some folks go with HO-2 coverage, the second to lowest level. These relatively cheap “broad form policies,” protect your property and valuables from 6 named perils including fire and lightning, freezing of household systems, and accidental damage caused by artificial electrical current. Most Americans (about 79 percent, as of 2017) go with HO-3 “special form” policies that cover all risks, except for excluded perils (like government action, flooding, and war). HO-5 “comprehensive form” policies offer, among other benefits, broader coverage for personal property. This level of coverage costs more and is best suited to high value single-family dwellings.

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