HO-3 vs. HO-5 homeowners insurance (and the other policy forms)

The difference is how your belongings are covered. An HO-3 covers your house against every cause of loss not specifically excluded, but covers your personal property only against a list of named perils. An HO-5 covers both the house and your belongings on that broader open-perils basis. HO-3 is by far the most common homeowners policy.

By the Fast Insurance Group editorial teamPublished by Marcus L. Barber, former licensed Maryland property and casualty producer (2010–2012)Reviewed by Marcus L. Barber on October 17, 2026Updated October 17, 2026

This guide is general education, not advice for your situation. We're an independent publisher, not an insurer or agent, and we may earn a commission from partner links. How we make money.

HO-3 vs. HO-5 at a glance

The NAIC's homeowners report released in May 2025 found HO-3 made up about 79% of owner-occupied home exposures in 2022. The Insurance Information Institute (III) puts the national average HO-3 premium at $1,569 that year, up from $1,411 in 2021. No neutral source publishes how much more an HO-5 costs, so get both quotes from the same insurer if it offers them.

Open perils vs. named perils

A named perils policy covers only the causes of loss it lists. If something isn't on the list, it isn't covered, and in a dispute it's up to you to show a listed peril caused the damage.

An open perils (or "all risk") policy covers every cause of loss except those it specifically excludes. Coverage is broader, and if the insurer wants to deny a claim, it has to point to an exclusion. That doesn't mean everything is covered: open-perils policies still exclude flood, earthquake, wear and tear, pests and more. See what homeowners insurance doesn't cover.

Here's where the HO-3 vs. HO-5 difference shows up. Say you knock a new TV off the wall while cleaning. That accidental damage isn't on the standard list of named perils, so an HO-3 likely won't pay for the TV, while an HO-5 would unless an exclusion applies.

The 16 named perils

On an HO-3, your belongings are covered against a standard list of perils. The III lists them as:

1. Fire or lightning
2. Windstorm or hail
3. Explosion
4. Riot or civil commotion
5. Damage caused by aircraft
6. Damage caused by vehicles
7. Smoke
8. Vandalism or malicious mischief
9. Theft
10. Volcanic eruption
11. Falling objects
12. Weight of ice, snow or sleet
13. Accidental discharge or overflow of water or steam from plumbing, heating, air conditioning, sprinklers or household appliances
14. Sudden and accidental tearing apart, cracking, burning or bulging of a steam, hot water, air conditioning or fire sprinkler system
15. Freezing of those systems and appliances
16. Sudden and accidental damage from artificially generated electrical current

Water from a burst pipe or failed appliance is on the list, but slow leaks, seepage and flood are not. If water damage is what you're facing, our sister site Home Water Damage Help coverswhat to do about frozen pipes anda dishwasher leaking from the bottom.

Which should you choose?

• HO-3 fits most homeowners. The house gets broad coverage, and the named perils cover the most common ways belongings are lost.
• Consider HO-5 if you have a lot of valuable belongings, want accidental damage to your things covered, and the extra premium is modest. Insurers often reserve it for newer or well-maintained homes.
• Either way, make sure the policy pays replacement cost on belongings, not actual cash value; see replacement cost vs. actual cash value.

All the homeowners forms

DP-3 for rentals and second homes

Dwelling policies are a separate family of forms. The North Carolina Department of Insurance says they're typically used when the owner doesn't make the property a primary residence: rentals, vacation homes, seasonal or vacant homes and some older homes. DP-1 and DP-2 are named-perils forms; the DP-3 covers the dwelling on an open-perils basis, much like an HO-3 does for the house. Personal property, if included, is covered for named perils only, and dwelling policies typically don't include liability, so landlords usually add it.

A note on Texas forms

Texas has its own homeowners forms. In a 2018 comparison, the Texas Department of Insurance matched them to the standard forms: HO-A to HO-1, HO-A+ to HO-2, HO-B to HO-3 (open perils on the building, named perils on contents) and HO-C to HO-5. If you're in Texas, ask which form a quote uses.