The HO 8 is designed for situations in which the replacement cost of a home may be substantially higher than its market value or where the restoration costs using antiquated and inefficient materials and methods exceed current and common materials and methods. The insurance limits are directly related to the replacement cost; thus, this creates a moral hazard if the replacement cost greatly exceeds the market value. The HO 8 form amends the loss settlement basis as well as the insurance-to-value stipulation; this makes insurance coverage more accessible for owners of older urban homes. In particular, this form insures the dwelling and other structures based on the amount required to repair or replace the property using common construction materials and methods.