Form No. 2 Broad Homeowners Insurance
What Does Form No. 2 Broad Homeowners Insurance Mean?
Form No. 2 (HO-2) refers to a homeowners insurance policy that provides protection for the dwelling and other structures, both attached and detached, as well as personal property in the home, against 16 specified perils. HO-2 is also known as a broad-form policy because it offers more extensive coverage compared to HO-1.
Because an HO-2 only covers the perils written into the policy, buyers comparing the best homeowners insurance companies often weigh it against the broader HO-3 form before deciding which one fits their home.
Insuranceopedia Explains Form No. 2 Broad Homeowners Insurance
HO-2 provides coverage against the following 16 perils:
- Fire and lightning
- Explosion
- Smoke
- Windstorms and hail
- Damage from the accidental discharge or overflow of water or steam
- Ice, snow, or sleet
- Freezing
- Volcanic eruptions
- Riots and civil commotion
- Vandalism and malicious mischief
- Vehicles (only if third parties are at fault)
- Aircraft
- Theft (typically limited to $1,000)
- Falling objects
- Sudden and accidental damage from artificially generated electrical current
Premiums for an HO-2 generally run lower than an HO-3 because of the narrower coverage, so checking what average homeowners insurance costs look like in your area can help you decide whether the savings are worth the trade-off.
In some states, such as Virginia, HO-2 also offers coverage for personal liability, medical payments, and additional living expenses.