HO-8 – Older Homes/Modified Coverage Form
Definition:
A policy designed for older homes where replacement cost may exceed market value.
Explanation:
HO-8 often pays claims on an actual cash value basis rather than replacement cost. It’s useful for historic or high-cost repair homes.
Example:
If a fire damages a century-old house, HO-8 may pay based on ACV instead of the full cost to restore vintage materials.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.