Finding home insurance that truly protects your home and belongings means navigating standardized policy “forms” and fast‑changing market conditions. Policy types like HO‑3 (the most common homeowners form per NAIC) or HO‑6 (for condos/co‑ops) are matched to the kind of home you have and the coverages you need. In 2025, availability, pricing, and terms are also being shaped by climate and catastrophe trends (more high‑cost events and tighter underwriting), expanded use of peril‑specific deductibles, and state regulatory changes that affect how policies are priced and which add‑ons may be required or rewarded (NOAA; Gallagher Re; California DOI).
Understanding where standard homeowners insurance protects you—and where it does not—is essential. The best homeowners insurance can cover many common losses, but standard forms exclude flood and often limit certain water or earth‑movement losses, so endorsements and separate policies matter. If you live in a break-in prone neighborhood or a hurricane evacuation zone, confirm special deductibles (e.g., wind/hail or named‑storm) and add-ons like water backup, service line, or separate flood and earthquake coverage. Current consumer and regulator guides explain these gaps and options (NAIC; Insurance Information Institute).
The 9 Types of Homeowners Insurance Policies
HO-1: Basic Form
HO‑1 (Basic Form) is a limited named‑perils policy and is largely unavailable today—many states do not offer it at all. Authoritative consumer resources state that HO‑1 is “not available in most states” and is no longer widely sold; where a basic option exists, it is often a state‑specific form (e.g., Texas HO‑A) or a dwelling fire policy, not ISO HO‑1 (NAIC consumer guide; Insurance Information Institute; Texas Department of Insurance; Washington OIC; Wisconsin OCI; Bankrate).
An HO‑1 typically insures only these ten named perils, often at actual cash value and with limited or no liability/personal property coverage compared to modern HO‑3 policies:
- Fire and smoke
- Explosions
- Lightning
- Hail and windstorms
- Theft
- Vandalism
- Damage from vehicles
- Damage from aircraft
- Riots and civil commotion
- Volcanic eruption
HO-2: Broad Form
HO‑2 is a named‑perils homeowners contract that covers a standardized list of 16 perils; if a peril is not listed, it’s not covered. As of 2025, reputable sources confirm no changes to the HO‑2 base peril list—any broadenings occur through endorsements or by choosing open‑perils forms like HO‑3/HO‑5 (Insurance Information Institute; NAIC; Texas Department of Insurance; Verisk ISO 2022 program update; IRMI).
Beyond the ten HO‑1 perils above, HO‑2 includes the following (bringing the total to 16 standard named perils):
- Falling objects
- Weight of ice, snow, or sleet
- Freezing of household systems (HVAC)
- Sudden and accidental tearing apart, cracking, burning, or bulging of pipes and other household systems
- Accidental discharge or overflow of water or steam
- Sudden and accidental damage from artificially generated electrical current
HO-3: Special Form
HO‑3 is the market’s baseline homeowners policy and the most commonly sold form in the U.S., providing open‑perils coverage for the dwelling and other structures and typically named‑perils coverage for personal property unless you add an endorsement or upgrade to HO‑5 (NAIC; Insurance Information Institute). Because climate‑driven losses have raised volatility, many HO‑3s now feature peril‑specific deductibles (e.g., wind/hail or named‑storm) and tighter water‑damage terms unless endorsed (Gallagher Re; III water damage).
Instead of listing covered perils, HO‑3 covers “all risks” except those expressly excluded. Core coverages include:
- Dwelling coverage
- Other structures
- Personal property
- Loss of use
- Personal liability
- Medical payments to others
Common exclusions to verify (and consider endorsements for) include:
- War, government action, and nuclear hazard
- Wear and tear
- Earth movement (earthquake, landslide, mudslide)
- Water damage
- Flooding damages
HOB: Hybrid Policy
“HOB” generally refers to the Texas HO‑B–type form that historically paired open‑perils coverage for the structure with named‑perils for contents and often featured broader water‑damage protections than many HO‑3s. Today, most Texas insurers no longer sell standardized HOB policies and instead use proprietary company forms or ISO‑based HO‑3s with endorsements. Water coverage varies widely by insurer—compare terms for leak/seepage, access/tear‑out, foundation/slab damage from plumbing leaks, and sewer backup add‑ons (Texas Department of Insurance; Texas OPIC; III).
The 16 named perils commonly referenced for contents in these forms include:
- Fire or Smoke
- Lightning
- Accidental Discharge or Overflow of Water or Stream
- Windstorm or Hail
- Explosions
- Riot or Civil Commotion
- Vehicles
- Aircraft
- Theft
- Vandalism or Malicious Mischief
- Falling Objects
- Weight of Ice, Snow, or Sleet
- Volcanic Eruption
- Accidental Tearing Apart, Bulging, Cracking or Burning
- Freezing
- Accidental Damages from Artificially Generated Electrical Power
HO-4: Contents Broad Form
HO‑4 is a tenant’s policy—commonly called renters insurance—covering your belongings, personal liability, and loss of use (not the building). Nationally, renters insurance is relatively affordable at about $173 per year on average, though your price depends on limits, deductibles, and location (Insurance Information Institute summarizing NAIC data). Coverage is typically written on a named‑perils basis similar to HO‑2/HO‑3 personal property perils; you can often upgrade contents from ACV to replacement cost by endorsement (NAIC).
Renter’s insurance covers a mix of the named perils listed on the HO‑2 and HO‑3 form.
HO-5: Comprehensive Form
HO‑5 is an “open‑perils” form for both the structure and personal property, with broader default protections than HO‑3. A key difference: HO‑5 commonly includes replacement cost coverage for personal property without a separate add‑on, whereas HO‑3 often defaults to actual cash value for contents unless you endorse it. Given tightening terms around water and catastrophe risks, confirm exclusions and any special deductibles or sublimits (e.g., wind/hail, named‑storm, or water‑damage sublimits) in your market (Insurance Information Institute; Gallagher Re).
Typical exclusions for HO-3 and HO-5:
- Earth movement (earthquake, landslide, mudslide)
- Floods
- Water damage
- Damage from or infestation of birds, vermin, rodents, and insects
- Neglect, deterioration, and general wear-and-tear
- Settling, shrinking, bulging, or expanding of the foundation
- Pets and other animals
- Mold, fungus, and rot
- Intentional loss
- War, government action, and nuclear hazard
- Ordinance or law
- Smog, rust, and corrosion
HO-6: Unit-Owners Form
HO‑6 (condo/co‑op) policies insure your unit’s interior (walls, floors, ceilings/fixtures), your belongings, personal liability, loss of use, and typically include loss assessment coverage in case your association charges owners for certain covered losses to common areas. The needed “building property” amount depends on your master policy (bare‑walls vs. walls‑in). Many HO‑6 policies allow a replacement cost upgrade for contents via endorsement (NAIC).
HO-7: Mobile Home Form
HO‑7 adapts the HO‑3 framework to manufactured/mobile homes. Coverage can be tailored for primary, seasonal, or rental use. Because these homes can face elevated wind/hail exposure in some regions, verify if your policy includes a separate wind/hail or named‑storm deductible and consider endorsements like water backup, service line, and equipment breakdown where relevant (NAIC; Gallagher Re).
Mobile home form includes coverage for:
- Park model homes
- Prefab homes
- RVs
- Sectional home
- Modular homes
- Trailers
- Single- and double-wide mobile homes
HO-8: Modified Coverage Form
HO‑8 is designed for older or historic homes where replacement with original materials may be impractical. It’s typically a named‑perils form and often settles the dwelling on functional replacement cost or actual cash value rather than full replacement cost. Owners of older/historic homes should consider increasing Ordinance or Law coverage to address code‑required upgrades after a loss (NAIC consumer guide; Insurance Information Institute).
HO‑8 policies typically list 10 named perils similar to basic forms (insurer‑specific), such as:
- Smoke
- Lightning and fire
- Hailstorms and windstorms
- Volcanic eruptions
- Explosions
- Vehicles
- Aircraft
- Theft
- Civil unrest and riots
- Vandalism and malicious mischief
If you own your home…
Most owners start with HO‑3 and compare HO‑5 for broader protection; HO‑2 or HO‑8 may fit specific cases (named‑perils or older homes). The latest market data show average homeowners premiums around $1,759 per year for a policy with $300,000 dwelling coverage, but prices vary widely by state and risk profile (Policygenius pricing analysis). Climate‑driven volatility has contributed to tighter terms, more peril‑specific deductibles, and, in some areas, nonrenewals or movement into FAIR Plans/residual markets. States are responding: California advanced rules to allow forward‑looking catastrophe modeling and to recognize reinsurance costs—paired with mitigation discounts and commitments to write in higher‑risk zones—aimed at restoring availability and reducing reliance on the FAIR Plan (California DOI; NOAA). Shop multiple quotes, confirm special deductibles (wind/hail or named‑storm), and add separate flood/earthquake where needed (NAIC).
If you own a condo…
If you live in a condo or co‑op, HO‑6 is the right form. Match your “walls‑in” building coverage to your association’s master policy and consider higher loss assessment limits for shared property claims. Note regulatory developments that can change required coverage: for example, Florida’s state insurer of last resort (Citizens) is phasing in mandatory flood insurance for many personal residential policies as a condition of eligibility—condo owners insured through Citizens should verify requirements and deadlines (Citizens flood requirements; Florida Statutes §627.351(6)).
If you rent…
For renters, HO‑4 covers your belongings and liability; the building is the landlord’s responsibility. Average premiums are about $173 per year nationally, but your price depends on location, limits, and deductible choices (Insurance Information Institute). Consider upgrading personal property to replacement cost and adding endorsements like water backup, identity theft/personal cyber, or home‑sharing coverage if you host guests (NAIC; III: Personal cyber; NAIC: Home-sharing).
If you live in a mobile or manufactured home…
HO‑7 policies fit mobile/manufactured homes that aren’t eligible for standard single‑family forms. Confirm whether your insurer uses a separate wind/hail or named‑storm deductible and whether endorsements like water backup, service line, and equipment breakdown are available. In high‑risk areas, expect insurers to reward mitigation and apply granular, risk‑based pricing and terms (NAIC; Gallagher Re).
Homeowners Insurance Policies FAQ
What is the difference between an HO-5 vs HO-3 form?
Both HO‑3 and HO‑5 cover the dwelling on an open‑perils basis (subject to exclusions). The key difference is that HO‑5 generally extends open‑perils and replacement cost to personal property by default, while HO‑3 typically covers personal property for named perils and may default to actual cash value unless you add an endorsement. Given evolving risks, compare special deductibles (wind/hail, named‑storm) and water‑damage terms when choosing between them (Insurance Information Institute; NAIC).
What is the difference between an HO-3 vs HO-6 form?
HO‑3 is for houses and covers the structure, contents, liability, and other property features on the premises. HO‑6 is for condos/co‑ops and insures your unit’s interior (per your master policy’s definition), your belongings, liability, and loss assessment. Many HO‑6 policies allow you to add replacement cost for contents via endorsement; coordinate limits with your association’s master policy to avoid gaps (NAIC).
What home insurance endorsements or add-ons should I get with home insurance policy?
Match add‑ons to your top risks and building systems. Options seeing wider adoption include: flood insurance (homeowners policies exclude flood), earthquake insurance, water backup/sump overflow, service line coverage for buried utilities, home systems/equipment breakdown, identity theft and personal cyber, host protections for home-sharing, private wildfire defense services where available, and “green rebuild” upgrades. Insurers and regulators also emphasize mitigation credits and resilience add‑ons amid rising catastrophe losses (NAIC; LexisNexis 2024 Home Trends).
Finally, water backup of sewer protection is a commonly excluded peril you can add for a modest cost, and it’s especially relevant in older homes or those with basements. To see broader coverage gaps and solutions, review NAIC’s homeowner guidance and our guide to what does homeowners insurance covers.
What types of homeowners insurance coverages exist?
The following are coverage types of homeowners insurance policies:
- Dwelling coverage protects the essential structure of your home floors, walls, windows, ceiling, and roof, as well as attached structures, like the garage.
- Contents coverage protects your furniture and decor, plus your clothing, devices, collectibles, and jewelry. The items listed are typically covered at their actual cash value (ACV) but you can usually upgrade the protection to replacement cost for an extra fee.
- Personal liability responds to various perils: medical expenses for injuries sustained by guests on your property, your property damaging someone else’s property, and lawsuit. Personal liability is sometimes subdivided into personal liability and medical payments to others.
Take a look at these homeowners insurance frequently asked questions if you want to learn more about this industry.
