What HO form covers a historic home with replacement cost more than the market value?

The HO-8 modified form is specifically designed to provide coverage for historic homes whose replacement costs exceed their market value. This form allows homeowners to insure a property for its replacement cost without it being limited by the actual cash value or market value of the home. This is particularly significant for historic homes, which may have high replacement costs due to unique materials or craftsmanship that cannot be easily quantified in today’s real estate market.

Unlike the other forms, the HO-8 modified form accounts for the special needs of historic or older homes, allowing for more flexibility and appropriate coverage. For example, the standard HO-3 special form is a more comprehensive policy that covers a wide range of perils but does not specifically address the nuances of insuring homes with significant replacement costs compared to market value. The HO-1 basic form offers very limited coverage, primarily to cover named perils and would not be suitable for a historic home. The HO-4 contents form is designed for renters and does not cover structures at all, focusing only on contents. Therefore, the HO-8 is the only option that appropriately addresses the concerns associated with insuring a historic home under these circumstances.