Glossary

HO-8 (modified coverage form)

A named-perils policy for older homes whose rebuild cost far exceeds market value, paying to repair with common materials rather than replace like for like.

Also called: HO 00 08, HO8, older home policy

HO-8 (ISO HO 00 08) is designed for older or unusual homes where the cost to rebuild is much higher than the market value, such as a 1900s house with plaster walls, hand-milled trim and slate. A standard replacement cost policy would ask the owner to insure to the full cost of reproducing those features, and the premium would follow.

HO-8 changes the bargain in two ways. It insures against ten named perils, close to the basic form, and restricts theft coverage. It also settles building losses at repair cost, defined as the cost to repair or replace with common construction materials and methods, not with materials identical to the originals. In some states the loss is settled at actual cash value instead. Say a plaster ceiling is destroyed: the policy pays for drywall and paint, not for rebuilding the plaster.

The premium is lower because the insurer's exposure is lower, and the owner carries the gap between true restoration cost and the payment. Some insurers instead offer an HO-3 with a functional replacement cost endorsement, so ask for both options. Check how the lender views the form, too. See HO-8 policies for older homes, insuring a historic home and market value.

Last reviewed October 10, 2026

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Related terms

Replacement cost What it would cost to repair or rebuild with materials of like kind and quality at today's prices, with no deduction for age or wear. Market value The price a willing buyer would pay a willing seller on the open market, which includes the land and location and is not the basis for dwelling coverage. HO-3 (special form) The most common homeowners policy: open-perils coverage for the house and other structures, and named-perils coverage for belongings. Named perils Coverage that applies only to the causes of loss listed in the policy, so a claim is paid only if the damage came from one of them. Actual cash value What an insurer pays for damaged property: the cost to repair or replace it today, minus a deduction for age and wear, so less than a new-for-old payment.

Related guides

How the age of your home affects insurance Older homes cost more to insure and can be harder to place because of aging wiring, plumbing and roofs. Newer homes earn credits that fade. What to document. Four-point inspections for older homes What a four-point inspection covers (roof, electrical, plumbing, HVAC), which homes need one, what makes a report fail, and how to prepare before applying. Insuring a historic home Historic status rarely changes your policy; rebuild cost does. Valuation basis, appraisal, code-upgrade coverage and old systems decide how it is insured. HO-8 policies for older homes The HO-8 is a named-perils form that pays to repair an older home with common modern materials, not to restore its original plaster, tile and trim. Insuring a log home Log homes cost more to rebuild and hit exclusions for settling, rot and insects. How insurers classify them, how to set the limit and why upkeep records matter.

Related states

Wisconsin Wisconsin has the cheapest average HO-3 premium in the U.S., three home-state insurers in the top 10, an ACV-only FAIR plan and a big flood insurance gap.

Related tools

Which homeowners policy form fits your home? Answer a few questions about who owns the home, what kind it is and how it is used, and see which standard policy form usually fits and why.