Quick overview
Both HO‑3 and HO‑5 are forms of homeowners policies. In plain language: HO‑3 is the most common and covers your home against “open perils” but your personal property against a list of named perils; HO‑5 usually expands the personal property part to “open perils” and raises some built‑in limits.
Coverage differences
- Dwelling (Coverage A): Typically “open perils” on both forms; exclusions still apply (e.g., flood, earth movement).
- Other structures (B) & Loss of use (D): Follow A in most policies, subject to policy language.
- Personal property (C): HO‑3: named perils (fire, theft, etc.). HO‑5: often “open perils,” meaning covered unless excluded.
- Personal liability (E) & Med pay (F): Similar between forms; limits chosen by the policyholder.
Common sub‑limits
Both forms include category sub‑limits for items like jewelry, firearms, silverware, and cash. HO‑5 often sets higher defaults but high‑value items still need scheduling (adding specific endorsements) for full coverage.
When HO‑5 is worth it
- You own newer or higher‑value personal property (electronics, instruments) and want broader accidental damage protection.
- You prefer fewer fights over “was this peril listed,” since HO‑5 defaults to open‑perils for contents.
- Your carrier’s HO‑5 includes better replacement cost terms or higher built‑in sub‑limits.
Typical cost dynamics
HO‑5 often costs more than HO‑3 with the same base limits. The difference depends on the carrier and your state. To see directional impact on your premium, try our estimator and compare settings like deductible and location risk.
Use the estimator or browse state pages for local context.
FAQs
Do HO‑5 policies always cover everything?
No. “Open perils” still excludes items like flood or earth movement unless you have specific coverage. Read exclusions and conditions.
Can I upgrade from HO‑3 to HO‑5 mid‑term?
Sometimes. Many carriers allow rewriting at renewal; some mid‑term changes require a new policy. Ask your agent.
Will HO‑5 increase my personal property limit?
The form itself doesn’t change the limit you select, but some HO‑5 packages include higher default sub‑limits and broader causes of loss.