HO8 policy, also called the modified coverage form, is a type of home insurance for older buildings where the replacement costs potentially outweigh the market value.
The HO8 policy is usually reserved for owner-occupied homes whose actual cash value (ACV) is less than what it might cost to replace the damaged structure. Insurers typically use HO8 forms to insure:
HO8 policies may subtract depreciation when it pays out for damage. That cost is usually much smaller than the replacement cost, so your insurance company pays less after a loss. That keeps the overall cost of the HO8 policy down. The policy also offers other important coverages for:
The HO-8 form is a named-perils policy. Like HO1, HO8 only covers a loss if it’s caused by one of the 10 events listed in the policy. These events, or perils, are:
These perils represent some of the most common claims a homeowner may face. However, an HO-8 policy does not cover other perils that can cause expensive damage, such as:
When considering an HO8 policy, be sure to tell you agent about your home and the risks you face. They can help you choose the home insurance policy that fits you.
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