Home Insurance Coverage Types Explained
Not all home insurance is the same. Here are the 8 policy types every homeowner, landlord, and condo owner should know — with average costs and top providers for each.
Homeowners (HO-3)
What It Covers
The most common policy. Covers your dwelling (open perils), other structures, personal property (named perils), liability, and loss of use. Excludes flood and earthquake by default.
Who Needs It
Owner-occupants of single-family homes, townhouses, and small multi-unit properties where you live in one unit.
Landlord / Rental Dwelling (DP-3)
What It Covers
Covers the rental dwelling structure against open perils, loss of rental income, and landlord liability. Does NOT cover tenant belongings — tenants need their own renters policy.
Who Needs It
Owners of single-family rentals, small apartment buildings, or any property you rent out but do not live in.
Vacant Property (DP-1)
What It Covers
Basic named-perils coverage for unoccupied homes. Covers fire, lightning, windstorm, hail, explosion, and vandalism. More limited than HO-3 or DP-3 because vacancy dramatically increases risk.
Who Needs It
Owners of vacant homes awaiting sale, renovation, or new tenants. Standard HO-3 policies typically exclude coverage after 30–60 days of vacancy.
Flood Insurance (NFIP + Private)
What It Covers
Covers direct physical damage from flooding — surface water intrusion not caused by a plumbing failure. NFIP caps at $250K dwelling / $100K contents. Private flood can offer higher limits, replacement cost on contents, and basement coverage.
Who Needs It
Required by lenders for properties in FEMA Special Flood Hazard Areas (SFHA). Strongly recommended in Zones AE, VE, and X-500. Any homeowner in a flood-prone region.
Earthquake Insurance
What It Covers
Covers structural damage, personal property damage, and additional living expenses caused by earthquake. Typical deductibles are 10–15% of dwelling coverage. Does not cover tsunamis separately.
Who Needs It
Homeowners in seismically active regions: California, Pacific Northwest (Cascadia Zone), Alaska, Missouri/Tennessee (New Madrid Zone), Utah, Nevada, and Hawaii.
Personal Umbrella Policy
What It Covers
Provides an extra layer of liability coverage above your HO-3 and auto limits. Pays when underlying policy limits are exhausted. Typically covers bodily injury, property damage, and personal injury liability.
Who Needs It
Homeowners with significant assets, pools, trampolines, dogs, or teenage drivers. Anyone with net worth exceeding $500K should strongly consider it.
Condo Insurance (HO-6)
What It Covers
Covers interior improvements (walls-in), personal property, liability, and loss of use. Supplements the HOA master policy which typically covers the building shell and common areas.
Who Needs It
Condominium unit owners. The HOA master policy protects the building, but your unit interior, belongings, and liability are your responsibility.
Mobile / Manufactured Home (HO-7)
What It Covers
Similar to HO-3 but written specifically for mobile and manufactured homes. Covers the structure, personal property, liability, and additional living expenses. Can be written for homes on permanent or non-permanent foundations.
Who Needs It
Owners of mobile homes, manufactured homes, and modular homes. Standard HO-3 policies typically exclude these property types.
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