HO2 Insurance: Broad Form Insurance for Homeowners

what is a broad form
insurance policy ?

HO2 Insurance policy is the advanced form of Home Insurance compared to HO1, the most basic Insurance. From its name Broad, it covers a wide range of unpredictable occurrences for homeowners. Moreover, it also covers loss of use, personal liability, medical payments to others if someone might be injured on your property, and additional living expenses. Though it offers more coverage than the Basic form, please note that it will not fully protect homeowners from different disasters that might occur.

who needs a broad form
insurance policy ?

For homeowners who acquire bigger houses, it might be better to consider a broader coverage of a home insurance policy. However, if you are looking for budget-friendly homeowners insurance with comprehensive coverage, this Broad Form is a good catch. You can speak to one of our insurance agents to estimate if HO2 Broad Form Home Insurance Policy is right for you.

Anyone can obtain a HO2 insurance policy. It depends on how they will need it for their house. HO2 Broad form home insurance might not be as extensive as other typical homeowners insurance policies. Read further to understand how HO2 insurance can be a big help.

what does h02
insurance cover ?

Broad form home insurance policy protects the dwelling, like structures of the house and detached structures. It also covers personal properties from disasters in the home against named perils listed in the policy. Here’s the list of the 16 perils that HO-2 Policy covers:
  • Fire or lightning
  • Explosion
  • Smoke
  • Windstorm
  • Hail
  • Riot
  • Civil Commotion
  • Aircraft
  • Vehicles
  • Vandalism
  • Collapse
  • Sprinkler Leakage
  • Sinkhole Collapse
  • Volcanic Eruption
  • Falling Objects
  • Weight of Snow, Ice, or Sleet
  • Water Damage (Leakage)
Additionally, HO2 insurance policy covers the cost to repair damages or rebuild portions of the home if damage occurs. These include the detriment of heavy rains, heavy snow, heavy wind, and other named perils.

what does a homeowners need to consider in the h02 broad form home insurance policy?

HO2 Broad form home insurance is a balanced home insurance policy. It is not as inadequate as the HO1 basic policy but still not as comprehensive as most standard forms of homeowners insurance policies. However, Broad form home insurance can be a good choice, especially if you feel that your home is not at risk of disasters. To get the most suitable insurance policy, homeowners need to know the right coverage for their house. Let alone distinguish the difference between what insurance policy they need and what their budget will allow. Furthermore, it will be better for homeowners to research before deciding on what insurance policy they need. One more thing to consider is that the HO2 Broad form is a named-perils policy. It only pays for loss caused by listed perils of the insurance provider. If anything else causes the damage, homeowners must pay for the replacement and repairs. Additionally, the HO2 Broad form does offer broader coverage than the HO1 Basic form. Although, it still excludes some common risks for homeowners. For instance, HO2 includes the sudden and accidental discharge of water and steam yet usually excludes sewer backup and slow leaks. Lastly, homeowners can get an HO2 policy that covers the property’s replacement costoractual cash value. Below is the mini table to show the difference between replacement cost and actual cash value:
Replacement Cost Value (RCV) Actual Cash Value (ACV)
Provides the money needed to replace the lost items. It compensates for the value of the item in its most recent condition before the loss.
Item Value Depreciated Value
RCV Computation
Total RCV Coverage = Property Damage Value – Insurance Deductible
ACV Computation
Total ACV Coverage = Property Damage Value – Depreciation – Insurance Deductible

ho2 broad form home insurance
vs. ho3 special form policy

The HO2 insurance policy covers only 16 named perils, whereas it is on a named-perils basis. Hence, this means that it only covers damage to your property by one of the perils listed on the HO2 policy. Additionally, HO2 insurance is the upgraded form of HO1, which provides more protection for homeowners. On the other hand, HO3 Special form policy provides dwelling coverage for the structure of your home on an open-peril basis. It can protect homeowners in a broad range of risk occurrences. This includes damage to the house, damage to other structures, and personal properties. Moreover, it can also save homeowners from any legal casualties like medical expenses if accidents occur in their houses.
Broad form home insurance provides dwelling coverage, including attached and detached structures. It also protects your personal belongings and personal liabilities against 16 named perils which showed above. If you are looking for an insurance company that can suit your needs, you can contact us today to speak to our experienced local insurance agents. HO2 Broad form insurance policy gives protection for most people. It is one of the insurance policies that can help homeowners feel safe and comfortable. To acquire the best homeowners insurance broad form policy, get a Homeowners Insurance Quote for Free.