What is HO-5?
HO-5 is a type of homeowners insurance policy often referred to as a comprehensive form. It offers one of the most extensive levels of coverage among homeowners insurance options. Unlike more common policies, such as HO-3, which insures personal property only against named perils, HO-5 policies protect both the home and personal belongings against all risks unless specifically excluded in the policy.
This policy type is especially suited for homeowners with high-value homes or significant personal belongings, as it provides broad protection and higher coverage limits. HO-5 policies often include replacement cost coverage for personal items, meaning the insurance will pay the full cost to replace items without factoring in depreciation.
While HO-5 offers broad protection, certain exclusions are standard in these policies. Common exclusions include damage caused by earthquakes, floods, neglect, intentional acts, or war. To address these gaps, homeowners may purchase additional coverage, such as separate flood or earthquake insurance.
For example, if a high-value home suffers damage from a fire, an HO-5 policy will cover the repair costs for the home as well as the full replacement value of damaged personal belongings, such as luxury furniture, electronics, or jewelry, provided the damage wasn’t caused by an excluded peril.