There are five types of homeowner's policies. Let's take a look at them.
HO-1: Provides only minimal basic protection. Due to its many restrictions on coverage, it is available in only a handful of states.
HO-2: Costs about 10% more than HO-1, but removes many of the restrictions imposed by an HO-1 policy.
HO-3: An all-risk policy. Costs about 25% more than HO-1, but covers everything not specifically excluded in the policy.
HO-6: Used if you are purchasing a condominium.
HO-8: Used for unique or historical structures.
NOTE: Certain states may use different HO designations.