Homeowners insurance comes in standardized forms, labeled with letters and numbers most buyers never learn to read. HO-3 and HO-5 are the two you’ll run into most, and the difference between them changes what happens after a loss. This article breaks down all 8 standard homeowners insurance policy types, then explains exactly where HO-3 and HO-5 diverge.
The 8 types of homeowners insurance policies
Every standard homeowners policy falls into one of 8 forms. Most homeowners only ever encounter two or three of these, depending on their property type.
- HO-1 (basic form): Covers a short, named list of perils. Rarely sold today; most carriers have phased it out.
- HO-2 (broad form): Covers a longer named-perils list than HO-1, but still limited to what’s specifically listed.
- HO-3 (special form): The most common homeowners policy. Covers the dwelling against any peril except what’s specifically excluded, while personal property is covered only against named perils.
- HO-4 (renters insurance): For tenants who don’t own the structure. Covers personal property and liability, not the building itself.
- HO-5 (comprehensive form): Covers both the dwelling and personal property against any peril except what’s specifically excluded. The broadest standard form available.
- HO-6 (condo insurance): Covers your unit’s interior, upgrades, and belongings, since the building structure is typically covered by a master policy.
- HO-7 (mobile home form): Built for manufactured and mobile homes, with terms adapted to that construction type.
- HO-8 (modified coverage form): Designed for older homes where rebuilding to original specifications would cost far more than the home’s market value.
HO-3 vs. HO-5: what’s actually different
The core difference is how each form treats your personal property, not your dwelling. Both HO-3 and HO-5 cover your home’s structure on an open-peril basis, meaning any cause of loss is covered unless specifically excluded.
Personal property works differently. Under HO-3, your belongings are only covered against a named list of perils. If something damages your things in a way that isn’t on that list, the loss isn’t covered. Under HO-5, personal property is covered on the same open-peril basis as the dwelling, which closes a gap that HO-3 policyholders don’t always realize exists until they file a claim.
HO-5 also tends to include replacement cost coverage on personal property as standard, rather than an optional add-on. A premium figure alone never tells the full story, since how much you should actually pay for home insurance depends heavily on which form you choose, not a generic online estimate. HO-5 is broader, but that breadth comes with a higher premium than an equivalent HO-3 policy.
Which policy form do you actually need?
Most single-family homeowners start with HO-3, since it’s the industry standard and available from the widest range of carriers. If you want broader protection for your belongings and are willing to pay more for it, HO-5 is worth comparing directly against an HO-3 quote for the same property.
