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

• A. For the market value of the property
• B. For the replacement cost of the property
• C. For the appraised value
• D. For the insured value at policy issue

Answer: (A)

HO-8 is a modified dwelling form designed specifically for older homes with unique or nonstandard construction. Because these properties often cannot be practically or economically rebuilt to their original appearance, the policy is written on an actual cash value basis—meaning coverage is based on the market value of the property at the time of loss, with depreciation taken into account. This reflects what the home is worth in the current market rather than the cost to completely replace it today.

So, the most appropriate way to write HO-8 coverage is for the market value of the property, not its replacement cost, appraised value, or an amount set at policy issuance. Replacement cost, appraised value, or a stated insured value at issue would not align with how HO-8 accounts for value when a loss occurs, given its purpose to insure older homes at their actual worth rather than the cost to rebuild.