An HO-8 policy covers older or historic homes where rebuilding with original materials would cost more than the home's current market value. Unlike the broad homeowners insurance protection in an HO-3 policy, HO-8 covers named perils only rather than open perils. Claim payouts use actual cash value (ACV), so depreciation reduces what you'd collect after a loss.
What Is an HO-8 Insurance Policy?
Updated: June 27, 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 often 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
Plaster walls, knob-and-tube wiring and slate roofing cost far more to replicate than modern materials. That gap between rebuild cost and market value is why most insurers won't write a standard HO-3 on older homes. An HO-8 covers the home at functional repair cost instead, skipping the premium for period-accurate reconstruction. Rebuilding a Victorian-era home with original materials, for example, can run two to three times its 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 CoverageDwelling coverage under an HO-8 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 CoverageBelongings inside the home, including furniture, clothing and electronics, are covered under personal property coverage 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 ProtectionLiability 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 OthersHO-8 medical payments coverage pays for minor medical expenses when a guest is injured on your property, regardless of fault. Coverage limits are $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)If a covered peril makes your home uninhabitable, loss of use coverage pays for temporary housing, meals and other living costs. 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 DamageHO-8 covers damage from accidental fires and smoke, including structural repairs and personal property losses caused by fire or smoke exposure.
Windstorm DamageHO-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.
VandalismHO-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 CostHO-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 doesn't 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 DamageHO-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 DamageEarthquake 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 TearHO-8 doesn't 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?
Payouts under an HO-8 use actual cash value, meaning the insurer subtracts depreciation before cutting a check. A 20-year-old roof with a 30-year lifespan, for example, nets roughly one-third of current replacement cost. Older materials like slate, original hardwood and hand-laid brick depreciate fast, leaving homeowners with a steep out-of-pocket gap after a loss.
Premiums run lower than an HO-3 on the same home because the insurer's maximum payout is capped. For homes that can't qualify for an HO-3 due to age, condition or rebuild cost, HO-8 is often the only option available. Get quotes from at least three insurers and ask about endorsements like ordinance or law coverage and increased dwelling limits, which can close the ACV gap and help secure 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.
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.
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.
Older homes carry materials like plaster, knob-and-tube wiring and original hardwood that require specialized labor to replicate, pushing rebuild costs well above market value. An HO-8 covers the home at functional repair cost rather than full replacement cost, making it the practical option when a standard HO-3 won't apply.
No. Payouts are based on actual cash value, so depreciation comes out before the insurer cuts a check. Ask about endorsements that raise dwelling limits to narrow the gap between what ACV pays and what rebuilding actually costs.
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 spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he produces original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.
Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.
Mark holds a B.A. from Boston College and an M.A. in Economics and International Relations from Johns Hopkins University. He started his career in financial risk management at State Street and is also a five-time “Jeopardy!” champion.