Types of Homeowners Insurance Policies: HO-1 to HO-8

Home insurance form numbers can look like product tiers—HO-2, HO-3, HO-5—but they describe policy structures rather than a simple good-better-best ladder. The number by itself does not tell you whether the policy is right for your home.

What matters is what kind of property you own, whether the policy uses named-peril or open-peril coverage, how it values damaged property, and which exclusions and endorsements change the standard form.

These descriptions are useful shorthand, not substitutes for the policy. NAIC’s current homeowners market definitions recognize HO-1 through HO-8 as well as equivalent forms used in states or programs that do not use the standard labels.

Named Perils vs. Open Perils Comes First

Covered-peril structure is one of the most important distinctions among the common forms.

Named-peril coverage pays only when the loss is caused by a peril listed in the policy. Causes outside that list generally do not trigger the property coverage unless another provision changes the result.

Open-peril coverage starts more broadly: physical loss is generally covered unless the policy excludes it or another provision limits the claim.

Insurers sometimes describe open-peril coverage as “all risk,” but the phrase can be misleading. Flood, earthquake, wear and tear, maintenance problems and other causes can still be excluded.

Broad coverage still requires an exclusions review; no standard homeowners policy insures every cause of loss.

Homeowners Policy Forms, From HO-1 to HO-8

HO-1: Basic Form

Basic HO-1 coverage uses a named-peril structure: only losses caused by listed perils such as fire, lightning, windstorm and theft are covered.

Its narrow peril list makes policy wording especially important. High coverage limits do not protect against causes of loss that the form never insures.

Limited-market situations may make HO-1 relevant, but a lower premium alone is not enough reason to choose it.

Check:

• Exactly which perils are named
• Whether the dwelling and personal property use the same list
• How property losses are valued
• Whether the lender will accept the form
• Which endorsements can broaden coverage

Availability is limited because not every insurer offers HO-1, and product availability varies by state and company.

HO-2: Broad Form

Broad Form HO-2 still uses named perils, but its list is longer than HO-1.

Falling objects and water damage from specified causes are examples of additional listed perils that may appear in the broader form.

Coverage remains tied to the named list; a large policy limit does not make an unlisted cause of loss covered.

Price and underwriting can make HO-2 workable, but compare it carefully with an HO-3 quote. After an unusual claim, the difference between named-peril and open-peril dwelling coverage can matter more than the premium gap seemed to matter at purchase.

HO-3: Special Form and the Most Common Choice

Most owner-occupied homeowners policies are written on HO-3.

In NAIC’s latest published nationwide policy-form exposure report, based on 2022 data and released in 2025, HO-3 represented 78.99% of owner-occupied homeowners exposures.

Typical HO-3 coverage uses:

• Dwelling: Open-peril coverage, meaning physical losses are covered unless excluded
• Personal property: Named-peril coverage, meaning belongings are covered only for listed causes of loss

This split matters because the same event can be treated differently under the structure and contents sections.

Liability, medical payments and loss-of-use protection are normally part of the package too, with Coverages A–F separating those protections by function and limit.

Common does not mean universally best; HO-3 works mainly as a useful baseline for comparing broader or narrower forms.

HO-4: Renters Insurance

Renters use HO-4, which covers the tenant rather than the building itself.

Personal property is commonly insured for named perils, while liability and additional living expense coverage can also apply.

Landlords normally insure the structure. Limits should reflect the renter’s personal belongings and liability exposure.

Because HO-4 is a different product category, renters should not shop by homeowner form number.

HO-5: Comprehensive Form

For qualifying homes, HO-5 broadens the property side by giving both the dwelling and personal property open-peril treatment, subject to exclusions.

Here is the core comparison:

Broader contents coverage can matter when an unusual accidental loss damages or destroys a belonging but the cause is not one of the named perils in an HO-3 contents section.

Exclusions, limits and valuation still matter. Open-peril coverage does not automatically provide replacement-cost settlement, so compare replacement cost vs. actual cash value separately.

Can an HO-3 Be Upgraded to Look More Like an HO-5?

Sometimes. Adding a special personal-property endorsement can make an HO-3 closer to HO-5 on the belongings side; New York insurance guidance recognizes this type of endorsement.

An endorsed HO-3 can therefore be broader in a meaningful area than an unendorsed quote from another company.

HO-6: Condo and Co-op Insurance

Condo and cooperative unit owners generally use HO-6.

Association master policies handle portions of the building, while unit owners need coverage for the property interest and belongings assigned to them. Governing documents and the master policy determine where that boundary sits.

Unit coverage can include the owner’s real-property interest, personal property, liability and other personal protections.

Before sizing an HO-6 policy, determine whether the master policy covers:

• Bare walls only
• Original fixtures and finishes
• Some or all improvements and upgrades
• Common areas
• Loss assessments under specified circumstances

Using a standard single-family HO-3 as the sizing reference for a condo can produce the wrong building limit.

HO-7: Mobile and Manufactured Home Form

Mobile and manufactured homes are commonly written on HO-7-style coverage.

NAIC’s 2025 updated homeowners market definitions describe HO-7 as covering the structure on an open-peril basis while personal property is covered on a named-peril basis.

Specialized construction, anchoring, transportation and property characteristics can lead insurers to use dedicated underwriting and forms even when the policy is functionally equivalent to HO-7.

Ask which form applies and whether additions, attached structures, detached structures and personal property are covered as expected; an ordinary HO-3 is not automatically a substitute.

HO-8: Modified Coverage for Older or High-Risk Homes

Older or harder-to-insure homes may fit HO-8 when a standard replacement-cost form does not match the property well.

Reconstruction cost can be substantially higher than market value for some older properties.

Such a mismatch can occur with homes containing:

• Historic construction
• Materials or craftsmanship that would be unusually expensive to reproduce
• Older systems or features
• A reconstruction cost that is disproportionate to real-estate value

Traditional HO-8 coverage is narrower than HO-3 or HO-5, and loss settlement can differ from the replacement-cost structure used in broader forms. Read the actual valuation clause rather than assuming every older-home policy uses identical wording.

Higher HO numbers do not mean better coverage. HO-8 solves a different property problem; it is not an upgrade from HO-5.

HO-3 vs. HO-5: Which One Should You Choose?

For a standard owner-occupied home, this is often the most useful policy-form comparison.

An HO-3 can provide strong protection for the house while keeping personal property on a named-peril basis. HO-5 generally broadens the belongings side to open-peril coverage too.

When comparing quotes, ask:

1. How much more does HO-5 cost? Compare equivalent limits and deductibles.
2. Does the HO-3 include a special personal-property endorsement? If so, the difference may be smaller than the form numbers imply.
3. How are belongings valued? Open-peril coverage and replacement-cost valuation solve different problems.
4. Do both forms contain the same exclusions? Read flood, earthquake, water, wear, business-use and other exclusions.
5. Are roof and surface losses treated differently?
6. Are the liability and loss-of-use limits equivalent?

Broader contents protection may justify the HO-5 premium when the additional cost is affordable and the potential losses would be difficult to replace out of pocket. A large price gap makes an endorsed HO-3 worth comparing.

The HO Number Does Not Tell You Everything

Policy forms create a framework, but actual coverage can change materially after endorsements and state-specific amendments are attached.

Two HO-3 policies from different insurers can differ in:

• Roof settlement
• Water-backup protection
• Ordinance or law limits
• Personal-property valuation
• Cosmetic-damage exclusions
• Service-line or equipment-breakdown coverage
• Special limits for valuables
• Wind or hurricane deductibles
• Exclusions and definitions

The HO number is only a starting point because policy endorsements can add, remove or modify protection in the base form.

Also, the policy may not display an obvious “HO-3” or “HO-5” label. NAIC’s current homeowners data program recognizes equivalent forms, and consumer materials advise asking the insurer what type of policy is being offered when the standard number is not visible.

How to Identify Your Home Insurance Form

Use the declarations page and list of forms and endorsements as the reference point.

Look for form names such as:

• Homeowners 3 – Special Form
• Homeowners 5 – Comprehensive Form
• Homeowners 8 – Modified Coverage Form
• Or a company-specific equivalent

If the form number is unclear, ask the insurer or licensed producer three direct questions:

1. Is the dwelling covered on a named-peril or open-peril basis?
2. Is personal property covered on a named-peril or open-peril basis?
3. Which endorsements materially change those provisions?

Then check valuation and deductibles separately. A broad open-peril policy can still leave a substantial claim gap if property is settled at actual cash value or the applicable deductible is much larger than expected.

Which Homeowners Policy Type Fits Your Situation?

Property type and occupancy should narrow the choices before price enters the conversation.

The right policy is not automatically the form with the broadest theoretical coverage. It is the policy that fits the property, covers the major losses you need transferred to the insurer, uses limits and deductibles you can live with, and does not hide a critical restriction in an endorsement or exclusion.