Question 1

Which homeowners insurance policy type is most common?

Accepted Answer

HO-3 (Special Form) — the standard for single-family homes, covering roughly 80%+ of US homeowner policies. HO-3 covers your dwelling on an open-peril basis (anything except specific exclusions like flood and earthquake) but covers personal property only for the 16 named perils (fire, theft, vandalism, etc.). HO-5 is the upgrade — open peril on both dwelling AND contents — for higher-value homes.

Question 2

What is the difference between named peril and open peril?

Accepted Answer

Named peril policies (HO-1, HO-2, HO-4, HO-8) only cover the specific perils listed in the policy. If your damage doesn't come from a listed peril (e.g., a falling object isn't named), the claim is denied. Open peril policies (HO-3 dwelling, HO-5 dwelling+contents, HO-6, HO-7) cover everything EXCEPT specifically excluded events (flood, earthquake, war, normal wear and tear, intentional acts). Open peril is broader protection — most owners who actually read the policy prefer it for anything beyond bare-bones coverage.

Question 3

When should I upgrade from HO-3 to HO-5?

Accepted Answer

Three triggers: (1) home value above ~$400,000, where the cost of HO-5 (typically 10–15% more than HO-3) is small relative to dwelling value; (2) high-value contents (jewelry, art, electronics, fine furniture) — HO-5 pays replacement cost on contents while HO-3 pays actual cash value (depreciated); (3) you don't want to argue over whether your specific damage falls within the HO-3 named-peril list for personal property. HO-5 is roughly 10–15% more expensive than HO-3 but resolves most coverage ambiguity.

Question 4

What's the difference between HO-6 and HO-3 for condo owners?

Accepted Answer

HO-3 covers a single-family home where you own the structure. HO-6 covers a condo where the association owns the building exterior and common areas. HO-6 starts at the interior of your unit — walls-in, floors, ceilings, built-in appliances, your personal property, and liability. The condo association's master policy covers the building exterior, roof, hallways, and common areas. Always read your condo association's master policy first — terms like 'all-in', 'walls-in', or 'bare walls' determine how much HO-6 coverage you need to buy.

Question 5

Are renters covered under HO-3 if they live in a friend's house?

Accepted Answer

No. HO-3 only covers the named insured (the homeowner). If you rent — even from a family member or friend — you need an HO-4 (renters insurance) policy. HO-4 is cheap ($15–$30/month) and covers your personal property, liability for accidents you cause, and additional living expenses if the home becomes uninhabitable. The homeowner's policy covers the building, not your possessions or your liability as a renter.

Question 6

What does HO-8 actually cover and why is it cheaper?

Accepted Answer

HO-8 (Older Form) covers 11 named perils — the same as HO-1 — and pays out claims at actual cash value (depreciated value) rather than replacement cost. The trade-off: cheaper premiums in exchange for narrower coverage and lower payouts. Common for historic homes and homes whose true replacement cost exceeds market value (e.g., a 1920s craftsman with custom millwork that would cost $1M to faithfully recreate but only sells for $500K). If you own a newer home, HO-3 is almost always the better value.

Question 7

Do all states sell all 8 policy types?

Accepted Answer

No. HO-1 has been phased out in many states because it's deemed too narrow. HO-2 is becoming less common. HO-7 availability varies by state and by mobile-home-park geography. HO-8 is more common in older urban markets (Northeast, Midwest) than in newer suburbs. The big four — HO-3, HO-4, HO-5, HO-6 — are universally available. If a niche policy you want isn't offered in your state, the closest alternative is usually a customized HO-3 with endorsements.

Code	Name	Best for	Peril type	Market
HO-1	Basic Form	Bare-bones / niche use only	Named peril	<1% of US homes — many states no longer sell it
HO-2	Broad Form	Budget-conscious homeowners	Named peril	~5–10% of policies
HO-3	Special Form	Most single-family homeowners (default)	Hybrid	~80%+ of US single-family policies
HO-4	Renters / Tenants	Renters	Named peril	Standard for renters
HO-5	Comprehensive Form	Higher-value homes / new construction	Open peril	~5–10% of policies (rising)
HO-6	Condo / Co-op	Condo and co-op owners	Named peril	Standard for condos
HO-7	Mobile Home	Mobile and manufactured homes	Open peril	Standard for mobile / manufactured homes
HO-8	Older / Modified Form	Older homes, historic homes, homes whose replacement cost > market value	Named peril	Niche — usually for homes 40+ years old or historic

Homeowners Insurance Policy Types Explained (May 2026)

Quick Answer

The named-peril vs open-peril boundary determines what's actually covered

All 8 Policy Types — At a Glance

Each Policy Type in Detail

HO-1 — Basic Form

HO-2 — Broad Form

HO-3 — Special Form

HO-4 — Renters / Tenants

HO-5 — Comprehensive Form

HO-6 — Condo / Co-op

HO-7 — Mobile Home

HO-8 — Older / Modified Form

Which policy type is right for you?

Quote Your Policy Type

Frequently Asked Questions