An HO8 Policy is known as a modified coverage form. It is a Named Peril Policy that covers the building on an Actual Cash Value Basis (Replacement Cost minus Depreciation). The Named Perils covered are the following:
- Fire or Lightning
- Hail and/or Windstorm
- Riots and Civil Commotion
- Damage from Aircraft
- Damage from Vehicles
- Vandalism and Malicious Mischief
- Theft (Usually with a Sublimit)
- Volcanic Eruptions
More important to note is what is not covered by an HO8. The two main losses not covered would be Water Damage from a pipe burst and Falling Objects (like a tree branch) unless you can prove that it was caused by one of the above covered “Perils”. Of course, like all other homeowner policies, flood insurance is, also, excluded.
We prefer not to sell HO8 policies because of their limited coverages and depreciated payouts. However, oftentimes a home does not qualify for a better policy form because of the age of the home, roof or some other reason. Also, a client may request to only insure their property for liability only. In those cases, we may suggest an HO8 policy which can provide the liability they need, plus give some property coverage for a similar price.