Prior to the 1950s, there used to exist separate policies for the various damages that could affect a real estate property or home in particular. A home owner was hence forced to purchase separate policies covering losses arising from fire or theft of the personal property and so on. However, during the 1950s, policy reforms were developed, allowing the home owner to purchase all the insurance they needed under one complete policy.

These policies of course varied across insurance companies, and their fine print was difficult to comprehend most of the time. The need for standardization hence became so great a requirement that a private company based in Jersey City, New Jersey, known as Insurance Services Office, also known as the ISO, was created in the year 1971 to provide risk information related to home insurance and issued a simplified homeowners policy that was available for resale to insurance companies. These policies have been amended over the years and until recently the ISO had six standardized homeowners insurance forms that are in general and consistent use. Of these the form known as the HO-3 is the most common policy, and this is followed by HO-4 and HO-6 in terms of popularity. The other policies that, though less used are still significant are the HO-1, HO-2 and HO-5. Each is these policies have been summarized below:

HO-1

HO-1 is a limited policy that offers varying degrees of coverage but only for items specifically mentioned in the policy. These might be used to cover a highly priced object found in the home, such as a painting or an artifact of antique value.

HO-2

Similar to the HO-1, HO-2 is a limited policy in the sense that it covers only specific portions of a house against damage. The coverage is usually a 'named perils' policy, which lists the events that may cause damage that would be covered. Similar to HO-1, these factors are generally listed out in the policy.

HO-3

This is the most common policy that is written for most home owners and is designed to cover almost every aspect of the home, the structure and its contents as well as any 'wear and tear' that may arise from daily use of the premises as well as any visitors who may encounter an accident or injury while on the premises. The aspects that are covered as well as the limits of liability, if any, are to be clearly spelled out in the policy to ensure good coverage. The coverage this type of a policy offers is usually called an 'all risk' or else an 'open perils' policy.

HO-4

This type of a home insurance policy is commonly referred to as renter's insurance or renter's coverage. Similar to the HO-6 policy, this one covers those aspects of the (rented) apartment and its contents that are not specifically covered by the blanket policy written for the complex. This policy can also be used to cover liabilities arising from accidents and intentional injuries caused for guests as well as passers by up to a limit of 150' of the domicile.

HO-5

This policy is similar to HO-3 and covers only a home but not a condominium or an apartment. The homeowner and its possessions as well as any liability that might arise from visitors or passers-by are also covered. This coverage is differentiated in the sense that it covers a wider breadth and depth of incidents and losses as compared to what an HO-3 policy offers.

HO-6

This policy is a form of supplemental home owner's insurance and the HO-6 is also known as a Condominium Coverage. This policy is designed especially for the owners of condominiums and it includes coverage for the parts of the building owned by the insured and for the property of the insured that is housed within. Being designed to bridge the gap between what the home owner's association might cover in a blanket policy written for an entire building and those items of importance to the insured, generally the HO-6 policy covers liability for residents and guests of the insured apart from any personal property. The liability coverage, depending on the underwriter, as well as the premium paid apart from other factors listed in the policy, can cover incidents up to a limit of 150' from the insured property, including all valuables within the home from theft, fire or water damage or any other form of losses. It is important to read the Associations By-laws in order to determine the total amount of insurance required on your dwelling place.

HO-7

This policy is designed especially for mobile home owners.

HO-8

This is usually called 'older home' insurance and it lets home owners with higher replacement cost than the market value insure their premises at the lower market value rate.