An HO-1 Policy is a basic type of homeowners insurance that provides coverage for a limited range of perils. It typically protects the structure of the home and personal belongings against specific risks, such as fire, theft, and vandalism. However, it does not cover all potential damages, making it less comprehensive than other homeowners insurance options. This policy is often considered a starter option for homeowners, especially those on a tight budget. While it offers essential protection, homeowners may want to explore more extensive policies, like HO-3, for broader coverage that includes additional risks and liability protection.