Which homeowners policy is primarily designed for older homes with market value coverage?

The HO-8 policy is specifically tailored for older homes, offering market value coverage rather than replacement cost coverage. This is essential for properties that may have historic or architectural significance but do not meet current building codes or may have lower market values compared to the cost of rebuilding.

Market value coverage means that claims will be settled based on the property's current market value, which can be significantly less than the cost to replace modern materials and construction, making it a suitable option for older homes that could be valued less in today's market.

In contrast, other policies like the HO-3 and HO-5 provide more comprehensive replacement cost coverage, which might not be ideal for older homes where the cost to rebuild could vastly exceed the home’s market value. The HO-6 policy is designed for condominiums and does not apply to traditional homes. Therefore, the HO-8 is the most appropriate choice for insuring older homes while considering their unique valuation challenges.