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 Insurers may require HO-8 when a home has outdated wiring (knob-and-tube), galvanized plumbing, or a flat/low-slope roof that increases loss exposure.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.
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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 2026-06-14
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