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

The letters and numbers on a home insurance quote can look like product tiers: HO-2, HO-3, HO-5. But 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

The most important distinction among the common forms is how the policy defines covered causes of loss.

Named-peril coverage pays only when the loss is caused by a peril listed in the policy. If the cause is not on the list, the property coverage does not apply unless another provision changes the result.

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

“Open peril” is sometimes called “all risk,” but that phrase can be misleading. No standard homeowners policy covers literally every risk. Flood, earthquake, wear and tear, maintenance problems and other causes can still be excluded.

California Department of Insurance similarly warns consumers to read the exclusions even when a homeowners policy provides broad coverage.

HO-1: Basic Form

HO-1 is the basic named-peril homeowners form.

NAIC’s current market definitions describe it as covering named perils such as fire, lightning, windstorm and theft. Because coverage applies only to listed causes of loss, it is narrower than the broad and special forms.

An HO-1 can be relevant when an insurer offers only basic protection for a particular property, but it should be reviewed carefully before choosing it primarily for a lower premium.

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

Do not assume every insurer offers HO-1. Product availability varies by state and company.

HO-2: Broad Form

HO-2 is still a named-peril policy, but it covers more listed causes of loss than HO-1.

NAIC’s current definition specifically notes that HO-2 adds perils such as falling objects and water damage from specified causes to the narrower HO-1 structure.

The key word is still named. If damage results from a cause that does not appear in the applicable list, the broader number on the policy does not turn it into open-peril coverage.

An HO-2 may be appropriate where the price and underwriting make sense and the named-peril list covers the homeowner’s priorities, but compare it carefully with an HO-3 quote. The difference between a named-peril dwelling and an open-peril dwelling can matter more after an unusual claim than the premium difference appears to matter at purchase.

HO-3: Special Form and the Most Common Choice

HO-3 is the form most U.S. homeowners are likely to encounter.

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. NAIC describes it as the most common policy sold by far.

The basic HO-3 structure is:

• 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 is easy to miss.

An HO-3 normally combines property coverage with liability, medical payments and loss-of-use protection. Our Coverages A–F explanation breaks down those coverage categories separately.

Being the most common form does not automatically make an HO-3 the best policy. It makes it the useful baseline against which broader or narrower forms can be compared.

HO-4: Renters Insurance

HO-4 is the renters form, so it is not homeowners insurance for the building itself even though it sits inside the HO numbering system.

NAIC describes HO-4 as broad named-peril coverage for a tenant’s unscheduled personal property. It can also include liability and additional living expense coverage under the policy.

The landlord normally insures the building. The renter insures belongings and personal liability exposures.

This distinction is why a renter should not shop by asking for “the cheapest homeowners form.” The correct product category is renters insurance, and the required limits should be based on the renter’s own property and liability needs.

HO-5: Comprehensive Form

HO-5 is broader than HO-3 in one particularly important way: personal property generally receives open-peril coverage too.

NAIC’s current definition describes HO-5 as providing open-peril coverage for both the dwelling and personal property.

That creates the cleanest HO-3 vs. HO-5 comparison:

Open-peril personal property 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.

However, an HO-5 still has exclusions, limits and conditions. It also does not automatically guarantee that every item receives replacement-cost settlement. Valuation is a separate issue, so check replacement cost vs. actual cash value rather than assuming the HO number answers that question.

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

Sometimes. New York Department of Financial Services notes that broader personal-property protection similar to HO-5 may be available by adding a special personal-property endorsement to an HO-3.

That is another reason not to compare policy names alone. An endorsed HO-3 can be broader in a meaningful area than an unendorsed quote from another company.

HO-6: Condo and Co-op Insurance

HO-6 is designed for condominium and cooperative unit owners.

The building association typically carries a master policy, while the unit owner needs coverage for the property interest and belongings that fall to the individual owner. Exactly where that boundary sits depends on the association’s governing documents and master policy.

NAIC’s current definition says HO-6 covers the insured’s real-property interest and personal property in a condominium or cooperative building.

Before sizing an HO-6 policy, obtain the association’s master policy and determine whether it covers:

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

A standard single-family HO-3 is not the right reference point for deciding how much building coverage a condo owner needs.

HO-7: Mobile and Manufactured Home Form

HO-7 is the form NAIC currently uses to classify coverage for mobile and manufactured homes.

Its 2025 updated homeowners market definitions describe HO-7 as covering the mobile or manufactured home structure on an open-peril basis while personal property is covered on a named-peril basis.

Manufactured homes have different construction, anchoring, transportation and property characteristics from site-built homes, so insurers may use specialized underwriting and forms even when the policy is functionally equivalent to an HO-7.

Do not assume an ordinary HO-3 quote can simply be substituted for manufactured-home coverage. Ask the insurer which form applies and whether additions, attached structures, detached structures and personal property are covered as expected.

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

HO-8 is designed for situations where a standard replacement-cost homeowners form may not fit the property well.

NAIC’s current market definition describes HO-8 as limited coverage for older or high-risk homes. Its consumer shopping materials have historically used older homes with reconstruction costs substantially above market value as the classic example.

That can happen 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 be modified from the replacement-cost structure found in broader forms. But do not assume every policy labeled for an older home uses identical ACV or repair-cost wording. Read the actual valuation clause.

This form is a good example of why “higher HO number = better coverage” is wrong. HO-8 serves a particular 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. An 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?

If the HO-5 premium difference is affordable and broader contents coverage would protect against losses you could not comfortably replace yourself, it may offer meaningful additional protection. If the price difference is large, an endorsed HO-3 can be 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

Our guide to homeowners insurance endorsements explains how amendments can add, remove or modify the 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

Start with the declarations page and list of forms and endorsements.

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?

The property 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.