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Definition
An HO-3 policy is the most common homeowners insurance form, covering your dwelling on an open-peril basis and your personal property on a named-peril basis, while adding liability and loss-of-use protection. Open-peril means your home's structure is covered for any cause of loss unless it's specifically excluded, which gives broader protection than named-peril coverage. Your belongings, by contrast, are only covered for the perils the policy explicitly lists. The policy also pays for liability claims if someone is injured on your property and covers additional living expenses if a covered loss makes your home uninhabitable. Importantly, floods and earthquakes are excluded, so you'll need separate policies or endorsements for those risks. Coverage limits, deductibles, and pricing vary by state, insurer, and your home's characteristics, so review your declarations page carefully.
Also Known As
HO-3 Special Form
Special Form homeowners policy
Standard homeowners insurance
HO3
Used in Context
- When a storm tore shingles off your roof, your HO-3 policy covered the dwelling repair because wind wasn't an excluded peril.
- A homeowner shopping through Dreamy Leads compared HO-3 quotes to make sure the dwelling coverage met their lender's requirements.
- After a kitchen fire forced you out of your home, the loss-of-use portion of your HO-3 policy paid for a temporary rental.
Does HO-3 cover floods and earthquakes?
No. An HO-3 policy specifically excludes both floods and earthquakes. To protect against those risks, you'll typically need a separate flood insurance policy and a separate earthquake policy or endorsement, since standard homeowners coverage won't pay for that type of damage.
What's the difference between open-peril and named-peril coverage?
Open-peril covers your dwelling for any cause of loss unless the policy specifically excludes it, offering broader protection. Named-peril, which applies to your personal property under an HO-3, only covers the specific perils the policy lists. Anything not named isn't covered for your belongings.
What does an HO-3 policy actually cover?
An HO-3 covers your dwelling on an open-peril basis, your personal property on a named-peril basis, plus liability protection and loss of use for additional living expenses. Floods and earthquakes are excluded. Coverage limits and deductibles vary by state, insurer, and your home's details.
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