An HO-8 policy is a modified coverage homeowners insurance policy designed for older or historic homes where the cost to rebuild using original materials and methods exceeds the home's current market value. Unlike the broad homeowners insurance protection found in an HO-3 policy, HO-8 provides limited, named-peril coverage rather than open-peril protection. HO-8 claim payouts are based on actual cash value (ACV), which accounts for depreciation and typically results in lower settlements than full replacement cost.
What Is an HO-8 Insurance Policy?
Updated: April 30, 2026
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Key Takeaways
An HO-8 policy is a modified homeowners insurance form designed for older or historic homes where the cost to rebuild exceeds the home's market value.
HO-8 coverage pays claims on an actual cash value (ACV) basis, which factors in depreciation and typically results in lower payouts than replacement cost coverage under an HO-3 policy.
HO-8 policies cover only named perils, including fire, windstorms, hail, theft and vandalism, and exclude floods, earthquakes and wear-and-tear damage.
What is an HO-8 Insurance Policy?
WHY OLDER HOMES NEED SPECIALIZED COVERAGE
Older homes often contain materials such as plaster walls, knob-and-tube wiring and slate roofing, along with construction methods that cost far more to replicate than modern equivalents. Standard HO-3 policies may not cover these homes because the rebuild cost far exceeds the dwelling's market value, creating a gap most insurers won't underwrite. The HO-8 bridges that gap by covering the home at its functional repair cost rather than full historical rebuild cost. Rebuilding a Victorian-era home with period-accurate materials, for example, can cost two to three times the home's sale price.
What Does HO-8 Insurance Cover?
HO-8 insurance provides basic financial protection for older and historic homes that are difficult to insure under standard policy forms. The policy provides five core coverage types:
Dwelling Coverage
HO-8 dwelling coverage pays for physical damage to the home's structure caused by specific named perils listed in the policy. Payouts are calculated on an actual cash value (ACV) basis, meaning the settlement reflects the structure's depreciated value rather than the full cost to rebuild with original materials.
Personal Property Coverage
HO-8 personal property coverage pays for belongings inside the home, including furniture, clothing and electronics, when damaged by a covered named peril. Personal property limits under an HO-8 policy are lower than those on an HO-3 or HO-5 form.
Liability Protection
HO-8 liability protection covers legal costs and court-awarded settlements if someone is injured on your property or you cause damage to another person's property. Standard HO-8 liability limits commonly start at $100,000, though available limits vary by insurer and state; confirm the minimum with your insurer before purchasing.
Medical Payments to Others
HO-8 medical payments coverage pays for minor medical expenses when a guest is injured on your property, regardless of fault. Coverage limits are typically $1,000 to $5,000 per person, though exact limits vary by insurer and policy form; verify available limits with your insurer.
Loss of Use (Additional Living Expenses)
HO-8 loss of use coverage pays for temporary housing, meals and other living costs if a covered peril makes your home uninhabitable. Additional living expense (ALE) coverage under HO-8 is commonly capped at around 20% of your dwelling limit, though this percentage varies by insurer and policy; confirm the cap in your specific policy documents.
What Perils Are Covered Under HO-8?
HO-8 insurance covers a smaller, more basic set of named perils than an HO-3 or HO-5 policy. Covered perils include:
Fire and Smoke Damage
HO-8 covers damage from accidental fires and smoke, including structural repairs and personal property losses caused by fire or smoke exposure.
Windstorm Damage
HO-8 covers damage from strong winds, including roof damage, broken windows and debris impact. Coastal homeowners may have a separate wind or hail deductible on top of their standard policy deductible.
Hail Damage
HO-8 covers impact damage from hailstorms, including roof, siding and window damage. Claims are paid at ACV, so older roofing materials receive a depreciated payout rather than full replacement value.
Explosion Damage
HO-8 covers sudden damage from explosions, such as a gas line rupture or furnace malfunction, including structural damage caused by the blast.
Vandalism
HO-8 covers intentional damage to your property caused by others. Some HO-8 policies require the home to be occupied, and vacant properties may lose vandalism coverage under the policy terms.
Theft (Limited)
HO-8 theft coverage applies to stolen personal property, but limits and exclusions are stricter than those on an HO-3 policy. High-value items like jewelry may require a separate scheduled personal property endorsement.
What Does HO-8 Insurance Not Cover?
HO-8 policies have more exclusions than standard homeowners insurance forms. The five key exclusions are:
Full Replacement Cost
HO-8 policies pay actual cash value (ACV), not replacement cost. If a covered peril destroys part of your home, the insurer pays the depreciated value of the damaged components, not the full cost to rebuild with equivalent materials.
Modern Building Code Upgrades
HO-8 does not cover the cost of upgrading your home to meet current building codes after a covered loss. Rewiring, replumbing or adding fire suppression systems to meet modern standards is an out-of-pocket expense unless you add an ordinance or law endorsement.
Flood Damage
HO-8 excludes flood damage entirely. Homeowners in flood-prone areas need a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private flood insurer.
Earthquake Damage
Earthquake damage is excluded from all standard homeowners policy forms, including HO-8. A separate earthquake policy is required for homeowners in seismically active states.
Wear and Tear
HO-8 does not cover gradual deterioration, deferred maintenance or age-related breakdowns. A crumbling foundation, rotting wood or corroding pipes are the homeowner's financial responsibility, not the insurer's.
How Does HO-8 Insurance Work?
HO-8 claims are calculated using actual cash value, which means the insurer subtracts depreciation from the item's replacement cost before issuing a payout. If a 20-year-old roof with a 30-year lifespan is destroyed, the insurer pays roughly one-third of the current replacement cost, not the full amount. ACV payouts on older materials such as slate, original hardwood and hand-laid brick can leave homeowners with a large out-of-pocket gap.
HO-8 premiums are lower than an HO-3 policy for the same home because the insurer's maximum payout is lower. Homeowners who can't qualify for an HO-3 due to the home's age, condition or rebuild cost may find HO-8 is the only policy available to them. Homeowners should compare quotes from at least three insurers and ask about endorsements, such as ordinance or law coverage and increased dwelling limits, that can close the ACV gap and offer affordable home insurance coverage.
HO-8 vs. HO-3: Key Differences
Most homeowners default to an HO-3 policy because it provides broader, open-peril coverage for the home's structure and replacement cost payouts. HO-8 exists for homes that don't qualify for HO-3 coverage due to age, construction type or rebuild-to-market-value disparity. The table below offers a side-by-side comparison of the four most important differences between HO-8 and HO-3 policies.
Coverage Type | Named perils only | Open peril (dwelling structure) |
Payout Basis | Actual cash value (ACV) | Replacement cost value (RCV) |
Best For | Older, historic or hard-to-insure homes | Standard residential homes |
Coverage Scope | Limited, covers a basic list of perils | Broad, covers all perils except those specifically excluded |
*Comparison reflects standard policy forms. Coverage details vary by insurer and state.
HO-8 Insurance: Bottom Line
HO-8 is the standard policy form for older or historic homes where the rebuild cost exceeds the market value. ACV payouts and named-peril-only coverage mean less financial protection than an HO-3, but HO-8 may be the only option available for these homes. Homeowners with older homes should compare at least three quotes and ask each insurer about endorsements that increase dwelling limits or add ordinance-or-law coverage.
HO-8 Insurance: FAQ
These frequently asked questions cover what an HO-8 policy is, who it's designed for and how it differs from standard HO-3 coverage for older homes.
What is an HO-8 insurance policy?
An HO-8 policy is a modified homeowners insurance form that covers older and historic homes on an actual cash value basis with named-peril coverage. HO-8 is designed for properties where the cost to rebuild with original materials exceeds the home's current market value.
Who should get an HO-8 policy?
Homeowners with older homes, built before 1950, that cannot qualify for an HO-3 policy due to high rebuild costs, outdated construction materials or unique architectural features are the primary candidates for HO-8 coverage. Your insurer may require an HO-8 if a standard policy application is denied.
Why are HO-8 policies used for older homes?
Older homes cost more to rebuild than their market value because of materials like plaster, knob-and-tube wiring and original hardwood that require specialized labor. HO-8 bridges that gap by covering the home at its functional repair cost instead of full replacement cost.
Does HO-8 cover full replacement costs?
HO-8 does not cover full replacement cost. The policy pays claims on an actual cash value basis, which subtracts depreciation from the payout. Homeowners can ask their insurer about endorsements that increase dwelling limits to narrow the gap between ACV and replacement cost.
How is HO-8 different from HO-3 insurance?
HO-3 covers your home's structure against all perils except those specifically excluded (open peril) and pays replacement cost. HO-8 covers only a short list of named perils and pays actual cash value, which results in lower premiums but smaller claim settlements.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.
He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.
His insights on products ranging from car, home and renters insurance to health and life insurance have been featured in The Washington Post, The New York Times and NPR, among others.
Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to the analysis of the personal insurance market. He's also a five-time Jeopardy champion!