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

 

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



Homeowners insurance comes in eight ISO forms, HO-1 through HO-8, and the number decides what's covered and how much you're paid. Only a few see real use — HO-3 covers ~78–80% of single-family homes, HO-5 ~13%, HO-1 is nearly extinct.


Which HO Forms Are Actually in Use

FormStatus
HO-1Basic, ACV — nearly discontinued
HO-2Broader, still niche (~7%)
HO-3Market standard (~78–80%)
HO-4Renters' standard
HO-5Broadest, premium (~13%)
HO-6Condo standard
HO-7Mobile-home standard
HO-8Older-home fallback, ACV

A question I hear often: if HO-3 is default, why do the others exist? HO-8 matters most — it's often the only option for a 40+ year old home that can't pass HO-3 underwriting.

Named Perils vs. Open Perils: The Real Distinction

This is the point that trips up most homeowners. A named-perils policy pays only for listed causes of loss — fire, lightning, windstorm, theft. If the cause isn't listed, it's not covered. An open-perils ("special form") policy flips that: it covers everything except what's excluded, like flood — the insurer must prove an exclusion applies, not you.

HO-3, what most homeowners hold, runs both systems at once: open perils for the dwelling, named perils for contents. Your house has broader protection than the furniture inside it. HO-5 closes that gap. Fire is covered under every HO form.

A Real Example: Same Fire, Different Payout

Two neighbors each lose a garage to an accidental fire. One holds a standard HO-3; the other, whose 1962-built home couldn't pass HO-3 underwriting, holds an HO-8. Both claims get approved — fire is covered either way. But the HO-3 holder is paid replacement cost, what rebuilding costs today. The HO-8 holder gets actual cash value: replacement cost minus depreciation, often a smaller check. Both had "coverage." Only one had enough. This same structure shows up in state FAIR Plans, common in wildfire states like California.

Bottom Line

Own a standard single-family home? You're almost certainly quoted HO-3 or HO-5 — the real difference is open- vs. named-peril treatment of your belongings. If your home is older or high-risk, ask your agent whether you're offered HO-3, HO-8, or a FAIR Plan. Check your declarations page for the form number next to "Policy Type."

Location: 미국

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