Types of Homeowners Insurance Available in Florida, the Sunshine State
December 28, 2016

Most homeowners insurance policies cover the house, other structures on the property, its contents, and will also pay for living expenses if the main residence becomes uninhabitable. It is also common for them to provide personal liability insurance.

- Owner-occupied: There are three types of policies which cover owner-occupied, single family homes: Basic Form or HO-1, Broad Form or HO-2, and Special Form or HO-3 policies. HO-1 and HO-2 only cover the structure for specific perils mentioned in the policy. However, HO-1 is not frequently sold nowadays, because its coverage is too narrow. The HO-2 or Broad Form policy also covers living expenses in cases where the insured property is unsuitable for living. Some of the perils usually covered are windstorm, lightning, hail, and fire or explosion. In this type of policy, if a peril is not explicitly included, then it is excluded from coverage. Contrarily, the HO-3 policy – also known as Homeowners 3 or Special Form – covers any direct damage to the house and other structures on the property caused by any perils that are not explicitly excluded in the policy; this policy is the most commonly bought, because it has the minimum coverage required by lenders. In the case of loss of personal property, the coverage only protects against losses due to the dangers listed on the insurance policy.
- Condominium Unit-Owner or HO-6: This policy primarily provides coverage for personal property and liability of the insured, as well as some coverage for the structure. This type of policy typically covers listed perils, but additional coverage can be purchased. It also provides Loss Assessment Coverage, which means it pays your share of expenses on common property loss.

- Renters, HO-4, or Contents Broad Form: It is a variant of the HO-2, aimed towards those who rent rooms, apartments, or houses. It covers the insured's personal property that is within and outside the structure. Also, it includes liability insurance for damaged property and for injuries to the other people in the property. It can also include limited coverage for property alterations made by the renter.
- Modified Coverage Form or HO-8: This type of policy, offered by many insurers in Florida, was designed for older homes, which typically have higher replacement costs than their market value. HO-2 provides functional replacement, which implies reconstruction with less costly materials that perform the same function. This type of policy offers less coverage than the HO-2. It may include theft coverage, but it is limited to $1,000 per event.
- Dwelling Form:This type of policy is used to cover risks that might not be covered by homeowners insurance policy. In the case of mobile homes, many insurance companies have discontinued policies for these types of homes, but a dwelling form can be issued to cover it.
If you are looking for homeowners insurance in Florida, give us a call at (305) 235-4571 or fill out the contact form. One of our representatives will be happy to answer any questions you may have. You can also follow us on your favorite social media. Find us on Facebook as Key Title & Escrow, or follow us on Twitter @KeyTitle_Escrow.
Sources:
Florida Chief Financial Officer