Home & Property

HO-8 Policy (Modified Coverage)

A modified homeowners form for older or high-risk homes that pays on actual cash value rather than replacement cost.

Last reviewed: May 2026 · Editorial methodology

Definition

The HO-8 was created for homes where replacement cost would substantially exceed market value — common in historic neighborhoods or aging urban housing stock. Instead of paying to rebuild with like-kind materials, the HO-8 settles claims based on actual cash value or functional replacement (using modern equivalent materials rather than original). Named-perils coverage mirrors older ISO forms, typically listing 11 perils rather than the 16 found in HO-3 and HO-4. Insurers may require HO-8 when a home has outdated wiring (knob-and-tube), galvanized plumbing, or a flat/low-slope roof that increases loss exposure. Homeowners with HO-8 policies should be aware that claim payments may not fully fund a rebuild and may need to supplement with personal savings. Some state FAIR Plans also issue HO-8-equivalent policies as the insurer of last resort.

Where this term matters

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Actual Cash Value (ACV)The depreciated value of property at the time of loss — what your insurer pays minus age and wear.Named PerilsA coverage approach where only the specific causes of loss listed in the policy are covered.DepreciationThe reduction in value of property over time due to age, wear, and obsolescence, used to calculate actual cash value settlements.FAIR PlanState-mandated insurer of last resort for properties that cannot find coverage in the private market.Dwelling CoverageCoverage A on a homeowners policy — pays to repair or rebuild your home's physical structure.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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