What's the difference between HO3 and HO5 home insurance?

I'm in the market for home insurance and I'm open to all options. How does HO3 insurance differ from HO5 insurance?

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Shannon Martin
Answered on Mar 12, 2021
The difference between these two policies has to do with the type of risk the home is covered from.
The HO3 is the more popular and affordable option for most homeowners. It provides “”open-peril”” coverage for the dwelling and other structures on the property. Open peril means any type of loss will be covered, except for what is listed in the exclusions section of the policy. However, personal property is covered from “”named perils,”” which means coverage is only provided for losses resulting from the perils listed in the policy, nothing more.
An HO5 policy is written on an entirely open-peril basis, so all property is covered from any peril, aside from what is excluded. Since the HO5 coverage is more comprehensive, it does have a higher price tag. Both are policies with great coverage; work closely with your agent to determine which one will fit your needs.
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