How is the coverage usually written for HO-8 forms?

The HO-8 form, commonly used for insuring older homes that may not meet the requirements for standard homeowners policies, typically provides coverage based on the market value of the property. This is important because many older homes may have a lower replacement cost due to factors such as outdated construction methods or materials, yet their market value might be higher due to their location or historical significance.

By basing coverage on the market value, the policy allows homeowners to receive compensation that reflects the true value of their home in the event of a loss, rather than just the cost to replace the materials or carious outdated components. This approach is especially beneficial for older homes, where replacement costs can be significantly higher than the market reflects.

They are not usually written for replacement cost, actual cash value, or insured value, as those options may not fully align with the specific needs or values associated with older homes and their unique market conditions.