What Is the Difference Between HO3 and HO5 Homeowners Policies?

 

HO3 and HO5 are both nationally standardized forms of homeowners insurance policies but which one is the right one for you? To help you decide which is the better fit, we will look at both options and then break down the difference between HO3 and HO5 homeowners insurance policies. 

HO3 Insurance Coverage Explained

An HO3 policy is the most common type of homeowners insurance written. It offers protection for both your home structure and personal property, however, the way each is covered is different. For your home, and any other covered structures, the coverage is open-perils which means that it can cover any risk, or peril, except for those specifically excluded by the policy. Your personal belongings, on the other hand, are covered by named-perils only which means that if your policy does not specifically include a peril, you are not covered.

In addition to your home, additional structures, and personal property, HO3 insurance also covers additional living expenses should you be unable to live in your home for a period of time due to damages, personal liability should someone else be injured on your property (and it’s your fault), and medical fees (also in the case of someone else being injured on your property).

HO5 Insurance Coverage Explained

An HO5 policy is the most comprehensive type of homeowners insurance. Like the HO3 policy, it offers coverage for your home and personal property. Also like the HO3 policy, the HO5 policy is written open-perils for your home and any other covered structures. Where the HO5 policy really differentiates itself is that your personal property is also written open-perils, meaning that damage to your home and/or property, when its caused by a peril, is covered as long as the event, or peril, is not specifically excluded in your policy.

Like the HO3 policy, in addition to your home, additional structures, and personal property, HO5 insurance also covers additional living expenses should your home become uninhabitable due to a peril, personal liability should someone else be injured on your property (and it’s your fault), and medical fees (also in the case of someone else being injured on your property).

The Difference Between HO3 and HO5 Homeowners Insurance Policies

The primary difference between HO3 and HO5 home insurance policies is the way your personal belongings are covered. With HO3 coverage, your contents coverage is written as named perils which means that your personal belongings are only covered by perils written specifically in your policy. On the flipside, with HO5 coverage, your contents coverage is written as open perils which means that unless a peril is specifically excluded, it is covered. Below is a graphic we have put together comparing the standard HO3 and HO5 policy, however, it is always important to discuss the specifics with your insurance agent for your policy.

ho3 vs ho5 comparison chart

Save on Your Homeowners Insurance With TGS Insurance

Whether you are looking for a basic homeowners insurance policy or looking to take things to the next level, TGS Insurance works with a variety of highly-rated insurance providers that deliver our clients the right options for their budget and home. Contact us today and see how TGS Insurance can help you save every month through bundling and identifying the right homeowners insurance provider for you.

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