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Homeowners insurance policies come in standardized forms numbered HO-1 through HO-8. Each form provides different coverage levels and is designed for specific property types or situations. Understanding policy forms helps homeowners select appropriate coverage for their property type.

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Policy Forms Overview

FormNameProperty TypeCoverage Level
HO-1BasicSingle-familyMinimal (rare)
HO-2BroadSingle-familyModerate
HO-3SpecialSingle-familyMost common
HO-5ComprehensiveSingle-familyPremium
HO-6CondoCondominiumUnit owners
HO-7Mobile HomeManufacturedMobile/modular
HO-8ModifiedOlder homesMarket value
HO-4 is renters insurance, covering personal property and liability but not the dwelling structure. Not covered in this section as it’s for tenants, not property owners.

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Named Perils vs Open Perils

Before examining each policy type, understanding the difference between named perils and open perils is essential.
Policy lists specific covered risks. If a peril isn’t named, damage from it isn’t covered.Basic named perils (HO-1):
  • Fire and lightning
  • Windstorm and hail
  • Explosion
  • Riot and civil commotion
  • Aircraft damage
  • Vehicle damage
  • Smoke
  • Vandalism
  • Theft
  • Volcanic eruption
Limited list means limited protection.
Expanded list adds more covered perils:All basic perils plus:
  • Falling objects
  • Weight of ice, snow, or sleet
  • Accidental discharge of water or steam
  • Sudden tearing, cracking, or bulging of systems
  • Freezing of plumbing
  • Sudden damage from electrical current
Better coverage but still limited to listed perils.
Covers all risks except those specifically excluded. Much broader protection.Common exclusions:
  • Flood
  • Earthquake
  • War
  • Nuclear hazard
  • Government action
  • Neglect
  • Intentional damage
  • Earth movement
  • Power failure
  • Ordinance or law
If it’s not excluded, it’s covered. Provides best protection.

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HO-1: Basic Form

Minimal coverage protecting against 10 named perils only.Dwelling: Named perils Personal property: Named perilsOffers least protection of any homeowners policy form.
Rarely used or offered today. Some insurers no longer sell HO-1 policies.May be available as low-cost option in limited markets or for properties that don’t qualify for better coverage.
  • Only 10 perils covered
  • No coverage for falling objects, water damage, or many common risks
  • May not meet lender requirements
  • Minimal protection for premium savings

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HO-2: Broad Form

Expanded coverage with 16 named perils.Dwelling: Broad named perils Personal property: Broad named perilsBetter than HO-1 but still limited to listed perils.
Homeowners seeking lower premiums than HO-3 while maintaining reasonable coverage.May be appropriate for lower-value homes or budget-conscious buyers willing to accept coverage gaps.
  • Must prove loss was caused by listed peril
  • Unusual causes of damage not covered
  • Less comprehensive than HO-3
  • Small premium savings for reduced coverage

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HO-3: Special Form

Most common homeowners policy. Standard coverage for most single-family homes.
Combines open perils for dwelling with named perils for personal property.Dwelling: Open perils (all-risk) Personal property: Broad named perils (16 perils)Home structure has broadest protection. Belongings have good but more limited coverage.
Most homeowners with standard single-family homes. Default recommendation from most agents and required by most lenders.Balances comprehensive coverage with reasonable premiums.
  • Dwelling covered for almost any damage
  • Don’t have to prove specific peril caused damage to structure
  • Accepted by all lenders
  • Widely available and competitively priced
  • Personal property only covered for named perils
  • Must prove which peril damaged belongings
  • Mysterious disappearance of items may not be covered
  • Standard exclusions still apply (flood, earthquake)
HO-3 is the most common policy type and the standard against which other policies are compared. When people refer to “homeowners insurance” they usually mean HO-3.

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HO-5: Comprehensive Form

Premium coverage for homeowners wanting maximum protection.
Open perils coverage for both dwelling and personal property.Dwelling: Open perils (all-risk) Personal property: Open perils (all-risk)Broadest coverage available in standard policy forms.
Homeowners with valuable belongings, those wanting comprehensive protection, and higher-value homes.Worth considering if you have expensive furniture, electronics, collections, or simply want fewer coverage gaps.
  • Broadest protection for both structure and belongings
  • Easier claims process (don’t have to prove specific peril)
  • Covers mysterious disappearance of items
  • Fewer claim denials due to peril not being listed
Premiums typically 5-10% higher than HO-3. Additional cost buys significantly broader personal property coverage.May be required by insurer for high-value homes.

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HO-6: Condo Form

Designed specifically for condominium unit owners.
Covers what condo association master policy doesn’t.Unit interior: Walls, floors, ceilings, fixtures inside your unit Personal property: Your belongings Improvements: Upgrades you made to unit Liability: Personal liability coverage Loss assessment: Your share of association claimsDoes not cover building exterior, common areas, or structure (covered by association).
Condo associations carry master policy covering building structure and common areas. Your HO-6 fills gaps.“Bare walls” master policy: Association covers structure only. You insure everything inside walls, including fixtures, flooring, cabinets.“All-in” master policy: Association covers original fixtures and finishes. You insure improvements and personal property.Review association master policy to understand where their coverage ends and yours begins.
If association faces major loss exceeding their insurance, they may assess unit owners. Loss assessment coverage pays your share.Standard HO-6 includes $1,000 loss assessment coverage. Consider increasing if association has older buildings or limited reserves.
All condominium unit owners. Required by most mortgage lenders for condo purchases.Even if you own outright, protects your investment and provides liability coverage.
Condo owners sometimes assume the association’s master policy covers everything. It doesn’t. Without HO-6 coverage, you’re unprotected for damage inside your unit, your belongings, and personal liability.

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HO-7: Mobile Home Form

Coverage for manufactured and mobile homes.
Similar to HO-3 but designed for manufactured housing.Dwelling: The mobile or manufactured home structure Personal property: Belongings inside Other structures: Detached buildings on lot Liability: Personal liability coverageCoverage addresses unique risks of manufactured construction.
  • Covers transport damage (if moved)
  • May cover tie-down and foundation systems
  • Addresses wind damage vulnerability
  • Some policies cover debris removal after total loss
Coverage terms vary more than standard homeowners policies.
Owners of manufactured homes, mobile homes, and modular homes not permanently attached to foundation.Homes permanently attached to foundation may qualify for standard HO-3.
Not all insurers offer mobile home coverage. Specialized insurers focus on this market.May need to shop more extensively than standard homeowners.

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HO-8: Modified Coverage Form

Designed for older homes where replacement cost exceeds market value.
Basic named perils with modified settlement terms.Dwelling: Named perils, settled at market value or repair cost Personal property: Named perilsDoes not guarantee replacement with same materials or construction quality.
Older homes often have features expensive to replicate:
  • Plaster walls and ornate moldings
  • Original hardwood throughout
  • Custom millwork
  • Historic construction methods
Replacement cost coverage would be prohibitively expensive. HO-8 allows functional repairs without replicating original materials.
Repairs use modern materials and methods rather than original. Functional equivalence, not exact replacement.Example: Damaged plaster walls repaired with drywall. Maintains function without matching historic construction.
Owners of older homes (typically 40+ years) where:
  • Replacement cost far exceeds market value
  • Original construction methods are expensive to replicate
  • Home doesn’t qualify for standard HO-3
  • Lower premiums are priority over full replacement
  • Less comprehensive than HO-3
  • Named perils only
  • May not restore historic features
  • Lower coverage limits common
Owners of historic homes who want to preserve original features should discuss specialized coverage options with their agent. Some insurers offer historic home endorsements or specialty policies.

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Choosing the Right Policy

Standard choice: HO-3Upgrade to HO-5 if you have valuable belongings or want fewer coverage gaps.
Required: HO-6Review association master policy first to understand what you need to cover.
Required: HO-7Shop specialized insurers for best options.
Consider: HO-8 if replacement cost is prohibitiveTry HO-3 first. Only use HO-8 if standard coverage is unavailable or unaffordable.
Consider: HO-5 or specialized high-value home policyStandard policies may have coverage limits inadequate for expensive homes. High-value policies offer broader coverage and higher limits.

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Policy Form Comparison

FeatureHO-2HO-3HO-5
Dwelling coverageNamed perilsOpen perilsOpen perils
Personal propertyNamed perilsNamed perilsOpen perils
PremiumLowerStandardHigher
Claim burdenProve perilStructure: any; Contents: prove perilAny cause
Best forBudget-consciousMost homeownersValuable belongings

Next: What Affects Premiums

Location, claims history, credit, and deductibles

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