The 8 Types of Home Insurance Policies at a Glance

Home insurance policies in the U.S. are standardized into eight forms — HO-1 through HO-8 — each designed for a specific type of property or coverage need. Before diving into the details, here's a quick-reference comparison of all eight:

Two of the most important distinctions across all HO forms are named perils vs. open perils and replacement cost vs. actual cash value (ACV). Named-peril policies only cover losses from events explicitly listed in the policy. Open-peril (also called "all-risk") policies cover any loss unless it is specifically excluded — putting the burden of proof on the insurer to deny a claim. Learn more about how these work in our guide to named perils vs. all-risk coverage.

HO-1 Through HO-5: Policies for Standard Homes

HO-1 — Basic Form (Rarely Issued)

The HO-1 is the most stripped-down homeowners policy available, covering only about 10 named perils such as fire, lightning, windstorm, hail, explosion, theft, vandalism, smoke, riot, and volcanic eruption. It typically covers only the dwelling structure — no personal property and, in most versions, no liability coverage.

The HO-1 is largely a relic. Most major insurers have discontinued it, and most mortgage lenders won't accept it as sufficient coverage. If you're being offered an HO-1, it's worth exploring all alternatives first. Read our full breakdown in HO1 basic form coverage.

HO-2 — Broad Form

The HO-2 expands on HO-1 by adding around 16 named perils, including falling objects, freezing pipes, accidental water discharge, electrical damage, and glass breakage. Both the dwelling and personal property are covered, along with basic liability and additional living expenses.

It pays out at actual cash value (ACV), meaning depreciation is deducted from your claim payout. It's more affordable than an HO-3 but offers narrower protection. For a detailed look at whether broad form coverage makes sense for you, see our HO-2 broad form coverage guide.

HO-3 — Special Form (The Most Popular Policy)

The HO-3 is the most common homeowners insurance policy in the U.S., and it's the baseline standard for most single-family homes. Here's what makes it stand out:

• Dwelling coverage: Open perils — covered against all risks except those explicitly excluded (like floods or earthquakes)
• Personal property: Named perils — only covered for the ~16 listed causes of loss
• Liability, medical payments, and additional living expenses: Included
• Dwelling payout: Replacement cost value

The one gap in an HO-3 is that personal property still falls under named perils. If a mysterious or unusual cause damages your belongings, you may not be covered. For most homeowners, though, the HO-3 strikes the right balance of cost and protection.

HO-4 — Renters Insurance

The HO-4 is built exclusively for tenants — it covers your personal property and liability but includes zero dwelling coverage (that's your landlord's responsibility). It operates on a named-perils basis and also covers additional living expenses if a covered event makes your rental uninhabitable. Learn more in our guide to HO-4 renters insurance coverage.

HO-5 — Comprehensive Form

The HO-5 is the most robust standard homeowners policy available. The key difference from HO-3? It extends open-perils coverage to your personal property as well, and pays out at replacement cost value for both your home and your belongings — no depreciation deductions.

HO-5 is ideal for homeowners with high-value belongings, those in areas with diverse risks, or anyone who wants the most comprehensive protection with fewer claim disputes. It typically costs just 5–20% more than an HO-3 annually. Explore the full comparison in our HO-3 vs. HO-5 coverage guide.

HO-6, HO-7, and HO-8: Specialized Policy Forms

HO-6 — Condo / Unit-Owners Insurance

If you own a condo or co-op, an HO-6 is your go-to policy. Because the condo association's master policy covers the building's exterior and common areas, the HO-6 focuses on "walls-in" coverage — protecting your interior improvements, personal property, and personal liability.

Key coverages under HO-6:

• Interior structures (flooring, cabinets, fixtures you own)
• Personal property (named perils)
• Personal liability
• Loss assessment (if the HOA levies a special charge after a shared loss)
• Additional living expenses

HO-6 policies are significantly more affordable than HO-3 policies — averaging around $531/year compared to $1,411 for a standard HO-3. For a detailed walkthrough, see our HO-6 condo insurance guide or learn what your condo coverage actually needs to include.

HO-7 — Mobile and Manufactured Home Insurance

The HO-7 is the HO-3 equivalent for mobile, manufactured, and modular homes. It provides open-perils coverage for the structure and named-perils coverage for personal property — when the home is stationary. It does not cover motor homes or homes being transported.

Specialty insurers like Foremost, American Modern, and Assurant lead the market for HO-7 policies. Older mobile homes (especially pre-1976 units) may face more limited options, but coverage is still available. Learn more in our HO-7 mobile home insurance guide and our full mobile home insurance comparison for 2026.

HO-8 — Modified Coverage for Older Homes

The HO-8 is specifically designed for older or historic homes where the cost to rebuild to original standards far exceeds the home's market value. Standard insurers often won't write full replacement cost policies for these properties, making HO-8 the practical alternative.

Key characteristics of HO-8:

• Named perils only (~10 perils, similar to HO-1)
• Pays claims at actual cash value — depreciation is applied
• Focuses on functional repair using modern materials, not full historic restoration
• Covers dwelling, personal property, liability, and additional living expenses

For a deeper look, our HO-8 older home insurance guide covers everything from coverage triggers to better alternatives. And if you're dealing with an older home in general, see our guide on older home insurance challenges and costs.

How to Choose the Right Home Insurance Policy

Match Your Policy to Your Property Type

The simplest starting point is your property type:

Townhouse owners face a unique situation — whether you need an HO-3 or HO-6 depends on how your property is titled. Our townhouse insurance guide explains the key differences.

Key Questions to Ask Before Buying

Before committing to any policy, ask these five questions:

1. Is this open perils or named perils? Open perils offers broader protection and fewer claim disputes.
2. Does my property qualify for replacement cost — or just actual cash value? ACV can leave you thousands short after a major loss.
3. What are the personal property limits, and are high-value items covered? Jewelry, electronics, and art often need separate endorsements.
4. Does the policy match my property type exactly? A standard HO-3 won't properly cover a condo or mobile home.
5. What common exclusions apply, and do I need separate flood or earthquake coverage? All HO forms exclude floods and earthquakes by default.

Consider Your Coverage Amounts Too

Choosing the right policy type is only half the equation. Make sure your coverage limits are sized correctly for your situation. Our guides on how much home insurance coverage you need and how to compare home insurance policies side by side can walk you through the math. First-time homeowners can also find tailored guidance in our home insurance guide for first-time buyers.

Frequently Asked Questions

What is the most common type of home insurance policy?

The HO-3 (Special Form) is by far the most common homeowners insurance policy in the United States. It provides open-perils coverage for the dwelling structure and named-perils coverage for personal property, along with liability, medical payments, and additional living expenses. Most mortgage lenders require at least an HO-3-level policy for financed homes. It strikes the best balance between comprehensive coverage and affordable premiums for standard single-family homeowners.

What is the difference between named perils and open perils coverage?

Named-perils coverage only pays for losses caused by specific events listed in your policy — such as fire, theft, or windstorm. If the cause isn't on the list, the claim is denied. Open-perils (or "all-risk") coverage works the opposite way: it covers any loss unless the cause is specifically excluded, which puts the burden of proof on the insurer rather than the homeowner. HO-3 uses open perils for the dwelling and named perils for personal property; HO-5 applies open perils to both.

Do I need a different policy if I own a condo?

Yes — condo owners need an HO-6 policy, not a standard HO-3. Because the condo association's master policy typically covers the building's exterior and common areas, an HO-6 focuses on your unit's interior, personal belongings, personal liability, and loss assessments from the HOA. The cost is significantly lower than an HO-3, averaging around $531 per year nationally. The exact coverage you need depends on whether your HOA has a "bare walls-in" or "all-in" master policy.

Is HO-5 worth the extra cost over HO-3?

For most homeowners, yes — especially if you own high-value electronics, jewelry, furniture, or other personal property. The HO-5 extends open-perils coverage to personal belongings and pays replacement cost value (not depreciated ACV) for those items. The premium difference is typically only 5–20% more than an HO-3, which can easily be offset by a single avoided claim dispute. If your belongings are modest in value, an HO-3 may be sufficient.

What type of insurance covers a mobile home?

Mobile and manufactured homes are covered by an HO-7 policy, which is the mobile home equivalent of an HO-3. It provides open-perils coverage for the dwelling (when stationary) and named-perils coverage for personal property. Specialized insurers like Foremost, American Modern, and Assurant are the leading providers. If your mobile home is older (especially pre-1976), standard HO-7 coverage may be harder to obtain, and you may need a modified or specialized policy through a niche carrier.