What is HO-3?
HO-3, or Homeowners Policy Special Form, is the most popular type of homeowners insurance policy in the United States. It offers broad protection for the policyholder’s home and personal belongings while covering liabilities for accidents that occur on the property.
The structure of the home is covered under an “open perils” basis, meaning it is protected against all risks except those explicitly excluded in the policy. Common exclusions include damages from earthquakes, floods, neglect, or intentional acts. Personal belongings, on the other hand, are typically insured under a “named perils” basis, meaning coverage applies only for specific risks such as fire, theft, or vandalism.
HO-3 policies also provide liability coverage, protecting homeowners if someone is injured on their property or if the homeowner is responsible for damages to someone else’s property. The policy also includes coverage for additional living expenses, helping to pay for temporary housing and living costs if the home becomes uninhabitable due to a covered event.
While comprehensive, HO-3 policies do not cover everything. Floods and earthquakes require separate policies, and certain exclusions may apply. Homeowners should review their policy in detail to understand its limitations and consider endorsements or riders for additional protection.