Homeowner insurance without concrete foundation

A home without a solid concrete foundation will probably not qualify for an HO-3 form homeowners policy. However, a home like this is most likely an older house where the HO-3 would probably not be the best policy for this home anyway due to the requirement for replacement cost. In order to write a HO-3 policy you must insure it for at least 80% of the full replacement cost of the house. If the amount of insurance falls below 80% and a claim is presented then there will be a penalty and only part of the claim will be paid. Replacement cost means to rebuild the home exactly like it was when originally built with similar material. On an older home this is extremely high due to the cost of similar material. For this reason, you would want to write a HO-10 or HO-8 policy for these older homes as it is a actual cash value policy instead of replacement cost.