There are several types of home insurance policies and a variety of insurance perils that are covered by each type. A named peril is an event that is specifically covered by an insurance company in its policies and coverage provided to its customers. The insurance companies breakdown home insurance into three main categories based on the types of perils they cover and are designated: HO-1, HO-2, and HO-3. There are also other types of homeowners insurance that cover renters insurance, condominiums, and other structures that are designated all the way up to HO-8.

The most basic and standard homeowners insurance policy is HO-1. This type of home insurance covers a few basic types of perils that can damage your home. Many home insurance companies have stopped selling HO-1 in favor of the more comprehensive HO-2 home insurance policy. HO-2 is the broad form insurance that covers 16 different perils ranging from fire or lightning to volcano eruptions. HO-2 also covers your home should it be damaged by wind and hail, explosions, riots, freezing pipes, water damage from plumbing, water heater malfunctions, vandalism, smoke damage, theft, ice and snow, electric current spikes, falling objects, or damage caused by a crashing car or airplane.

HO-3 is one of the most popular home insurance coverages because the policy is so all-encompassing. While HO-2 specifically covers 16 named perils, HO-3 covers any other perils you may encounter except for those that are expressly not covered. HO-3 home insurance does not include coverage for ordinance or law liability, earthquakes, aftershocks, sinkholes, landslides, mudflows, water damage from floods or sewer back-ups, power failure, or neglect from not properly maintaining your home. The HO-3 also does not provide homeowners insurance for events such as nuclear radiation or acts of war.