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Insurance · Homeowners Policies

Which HO form is most commonly sold to homeowners?

Correct answer

HO-3 (Special Form) — open perils on the dwelling, named perils on contents

  1. A HO-1 (Basic Form)
  2. B HO-3 (Special Form) — open perils on the dwelling, named perils on contents
  3. C HO-4 (Renters Form)
  4. D HO-8 (Modified Coverage Form)

Why this is the answer

HO-3 is the most widely sold homeowners policy because it provides the broadest coverage at a moderate premium. DWELLING (Coverage A): open perils — all causes of loss except those specifically excluded. PERSONAL PROPERTY (Coverage C): named perils — only the listed causes (fire, theft, wind, etc.). This asymmetry is the most tested HO-3 feature. HO-1 is rarely sold today (too limited). HO-2 (Broad Form) covers both dwelling and contents on named perils. HO-5 is the most comprehensive (open perils on both). HO-3 balances coverage and cost for the typical homeowner.
Source: Property Insurance Exam, HO-3 Form

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