HO-2 and H0-3 : What is the difference?

HO-2 and HO-3 are both types of homeowners insurance policies, but they differ in terms of the scope of coverage they provide.

An HO-2 policy, also known as a "broad form" policy, typically covers the following 16 named perils:

1. Fire or lightning

2. Smoke

3. Windstorm or hail

4. Explosions

5. Riot or civil commotion

6. Damage caused by aircraft

7. Damage caused by vehicles

8. Theft or vandalism

9. Falling objects

10. Weight of ice, snow, or sleet

11. Accidental discharge or overflow of water or steam from plumbing, heating, air conditioning, or household appliances

12. Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, air conditioning system, or appliance

13. Freezing of plumbing, heating, air conditioning, or household appliances

14. Sudden and accidental damage from artificially generated electrical current

15. Volcanic eruption

16. Loss of property due to sudden and accidental damage caused by artificially generated electrical currents.

HO-3 policies, on the other hand, are more comprehensive than HO-2 policies and are often referred to as "special form" policies. They cover all perils except for those specifically excluded in the policy, such as earthquakes and floods.

In general, HO-3 policies offer greater protection than HO-2 policies and are more commonly purchased by homeowners. However, HO-2 policies may be a more affordable option for homeowners who want some basic coverage but are willing to accept more risk and responsibility for damages not covered by the policy.