HO-1 – Basic Form
Definition:
The most limited homeowners policy form, covering only a few named perils.
Explanation:
HO-1 typically insures against fire, theft, and a handful of other risks. It’s rarely sold today because of its narrow protection.
Example:
If a fire damages your home, HO-1 pays for repairs. But if a pipe bursts, the policy won’t cover it.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.