Which homeowners form is most appropriate for an older home whose replacement cost exceeds its market value?

The HO 8 Modified Coverage Form is specifically designed to meet the needs of older homes, particularly those where the replacement cost of the home is significantly greater than its market value. This form recognizes that older homes often have unique characteristics and historical value that may not be fully captured in a standard homeowners policy.

The HO 8 form typically provides coverage based on the actual cash value of the home rather than the replacement cost, which is more fitting for homes that would be costly to replace but may not sell for as much on the market. This form also includes selected types of coverage that may be more relevant for maintaining the home's integrity and character.

The other forms listed have different focuses: the HO 2 Contents Broad Form primarily covers personal property within a home and does not specifically cater to the unique needs of older homes. The HO 6 Unit-Owners Form is designed for condominium owners and addresses shared spaces, which is irrelevant for standalone older homes. The HO 1 Basic Form offers very limited coverage and is not suitable for a home in need of more comprehensive protection due to its age and condition. Thus, the HO 8 Modified Coverage Form is the most appropriate choice for older homes facing these specific challenges.