What Is an HO-8 Insurance Policy

Posted by

For people who reside in older homes or recognized landmarks, an HO-8 insurance policy could be an outstanding and maybe only selection for you. This coverage safeguards you against incidents like theft, destruction, and fire. Additionally, it presents discounts for loss prevention implements like water leak sensors, fire alarms, and burglar alarms.

What Is an HO-8 Insurance Policy

Although the coverage is classified as a named-peril policy, it presents policy against dangers that are specifically noted in the policy, like theft, destruction, and fire. Furthermore, this coverage reimburses at actual cash value but does not return at replacement payment.

What Is an HO-8 Insurance Policy

An HO-8 insurance policy, regularly known as a modified coverage form, has the special feature that the repair and replacement expenses could be greater than the home’s market value. Ancient houses and those designated as identified landmarks frequently cover the expense of reconstructing them to their original form more than a normal modern house. However, they could not have been improved for some time and might be out of code, depending on modern principles.

Therefore, they might be eligible for more typical homeowner insurance. If you purchase an HO-8 insurance policy, the named peril listed in your coverage ensures comprehensive coverage for your home against any damage. Furthermore, claims are reimbursed on an actual cash value, depending on depreciation and wear and tear when estimating financial damages.

How Does an HO-8 Insurance Policy Work

Homeowners insurance aims to offer coverage to homeowners against financial crises due to damage to their homes and individual possessions. Since HO-8 insurance is a special kind of policy, it is right for residences that are not suitable for typical insurance criteria.

Moreover, this policy provides the following coverage, including:

Dwelling coverage

The dwelling coverage helps to cover the material structure of the house, like your roof, structure, adjacent buildings, and built-in appliances and systems.

Other structure coverage

Other structure coverage is a variety of coverage that covers construction facilities on your land that are not comprised of the primary residence, such as garages and sheds.

Liability coverage

This coverage suggests financial protection by disbursing for legal expenses and lawsuits. This occurrence occurs when someone causes harm to your property or if you are held accountable for causing harm to someone’s possession.

Medical payment coverage

Despite who is responsible, medical payment coverage offers coverage for little medical costs when a client is hurt on your property.

Loss of use coverage

Loss of use provides coverage for additional living costs such as temporary accommodation and eating, whereas your home is rebuilt or repaired after a covered loss.

In addition, HO-8 insurance provides home insurance policies depending on the actual cash value and claims valued based on depreciation. Furthermore, this is due to minimal payments in contrast to replacement expenses, particularly for old houses with extended depreciation periods.

What Does an HO-8 Insurance Policy Cover

The HO-8 form is a modified form that provides coverage for homeowners unable to attain an HO-3 policy for their older home, typically more than 40 years old. Under an HO-8 insurance policy, the insured’s dwelling, personal property, liability, and loss of use are covered.

However, this policy does not cover your home and individual possessions as a HO-3 or HO-5 policy. An HO-8 will at least provide certain key coverage against the most common perils (causes of loss).

Named peril

HO-8 is known as a named peril policy in that it only covers what is explicitly listed. The HO-8 policy shares similarities with the HO-1 policy in terms of coverage. It provides coverage against basic perils.

  • Wind
  • Civil commotion and riot
  • Smoke
  • Hail
  • Aircraft
  • Vehicles
  • Volcanic eruption
  • Explosion
  • Vandalism
  • Theft

Actual cash value

This term considers depreciation, indicating that damages payouts may not cover full replacement costs. This is how your provider can keep the insurance policy on such a home affordable.

Replacement cost

This term implies losses that are completely valued at their full worth. Older homes lack coverage alternatives and are not included in HO-8 policies due to their specific nature.

Common construction

Insurance typically covers losses incurred due to the use of modern or common building materials and practices. For instance, they may replace the same square footage damaged in your home but may not use original, more expensive materials.

What Does an HO-8 Insurance Policy Not Cover

As HO-8 policies only provide basic coverage, many potentially damaging perils are not covered. These may include:


Standard policies never cover earthquakes. Therefore, it is recommended that you seek out coverage that is specifically tailored to this particular risk.

Flood/water damage

Since typical homeowners’ policies do not cover flooding, the HO-8 insurance policy also excludes leaking or burst pipes.

Falling objects

The most common dangerous event in this category would be trees. Insurance companies may not cover a tree or its limb falling onto your house due to age or disease. However, if you can indicate that the falling object was caused by a covered peril, like a windstorm, your insurance company may cover it.

Additional HO-8 exclusions:

The following are other common exclusions from HO-8 policies:.

  • Hurricane
  • Mold
  • Vandalism in vacant dwellings
  • Government actions
  • Intentional damage
  • Building code enforcement
  • General wear and tear

How Much Does an HO-8 Insurance Policy Cost?

Older residences usually carry more heightened insurance risks, leading to higher fees for HO-8 insurance policies compared to standard homeowner policies. The HO-8 insurance policy offers an average rate of $2,035 yearly, offering coverage up to $399,999. The typical policy’s annual price for the same coverage is $1,278 per year.

How to Get an HO-8 Insurance Policy

You might be required to acquire HO-8 coverage if the factors or age of your home make it ineligible for a traditional policy. In New Jersey, a few providers offer HO-8 insurance policies. Most famous companies like State Farm and Allstate are respectable businesses to commence.

When purchasing an HO-8 home insurance policy, an agent who performs with multiple insurers might be a worthwhile help. Remember that most residences are qualified for standard homeowners coverage. Moreover, over three-quarters of homeowners can purchase a typical HO-3 policy, so unless your home is rare, HO-8 insurance may not be necessary.