1. Forms
  2. HO
  3. HO-00-02

What it does

The HO 2 insures the dwelling (Coverage A), other structures (B), personal property (C) and loss of use (D) only against the perils it names, such as fire or lightning, windstorm or hail, explosion, smoke, vandalism, theft, falling objects, weight of ice, snow or sleet, accidental discharge of water or steam and freezing. Section II adds personal liability (Coverage E) and medical payments to others (Coverage F).

ISO's 2022 homeowners program (03 22 editions) is the multistate standard in roughly 40 jurisdictions; the 2011 program (05 11 editions) remains the ISO edition in AL, CA, CT, FL, GA, HI, LA, NC, TX and VI, and North Carolina moves to a 2022-based program on June 1, 2027.

Who needs it

Owner-occupants who want a lower-cost alternative to the HO 3, and dwellings where the insurer will not offer open-perils coverage on the building.

Key provisions and limits

  • Losses from a peril not on the list are not covered, so water damage that is not a sudden accidental discharge, collapse from causes not listed and similar losses fall outside the form.
  • Coverage C special limits and the "business" definition and exclusions work as in the HO 3; property used for a home business is sharply sublimited.

Quoting and selling notes

  • When a business owner runs anything from home, ask whether income exceeds the de minimis threshold in the "business" definition; if so, add HO 04 42, HO 07 01 or a commercial policy.
  • Compare with HO 00 03 (open perils on the building) and HO 00 05 (open perils on contents).

Editions and availability

Editions in use and where they apply: 03 22 (40 jurisdictions); 05 11 (10 jurisdictions: AL, CA, CT, FL, GA, HI, LA, NC, TX, VI).

Section II changes affect umbrella placement. The ISO personal umbrella (DL 98 01) needs its own excess endorsements for business pursuits, home business, home day care and home-sharing exposures, so confirm the umbrella responds before relying on a homeowners endorsement for a business-type exposure.

Related forms

HO 00 03, HO 00 05, HO 00 22 (transition endorsement), HO DS 01.