What Is an HO-3 Policy?
An HO-3 policy is the one of the most common types of home insurance. The coverage is written on an open-perils basis for your home and other structures, which means it covers any risks except for those specifically listed in the policy. However, it offers named-perils coverage for your personal property, meaning it only covers damage to belongings caused by the events listed in your policy.
What Homeowners Need to Know about HO-3 Forms
The first thing to know is home insurance is written on a variety of forms. These forms standardize coverage from insurance company to insurance company. Which form your agent uses for your home depends largely on how much coverage you need. HO-3 is the most common form for owner-occupied homes because it offers broad coverage that many people find affordable.
HO-3 policies typically pay for damage to:
- The home
- Other structures on your property, like fences or detached garages
- Personal belongings, like clothes, furniture, etc.
For the first two items, HO-3 is an open-perils policy. That means your insurance company pays for damage to your home unless it’s caused by an event listed in the policy as an exclusion. Some common HO-3 policy exclusions are:
- Earth movement, such as an earthquake, sinkhole, and mudflow
- Water damage from flood, sewer backup, or water seeping in through the foundation
- Demolition of your home required by law to bring it to code
- Seizure or demolition by a government agency or public authority
But coverage for the contents of your house is different. HO-3 policies insure your personal property on a named-perils basis, meaning your insurer only pays for damage caused by events listed in the policy. Those named perils are usually the same 16 listed on an HO-2 form.
You can get open-perils coverage for your personal belonging by scheduling it. Scheduled property is an insurance term that means your items are individually listed in the policy along with the amount of coverage each gets. When property is scheduled, an HO-3 policy insures it on an open-perils basis.
HO-3 policies also offer replacement cost coverage for your home, other structures, and personal belongings. That means depreciation isn’t deducted from your payout.
HO-3 policies also cover your personal liability. This means it pays for the damaged property and injuries you or a family member cause another person. Plus, it covers your legal bills if the injured person sues.
How to Get an HO-3 Insurance Policy
You’ve come to the right place! Kin Insurance primarily offers Special Form (HO-3) policies for homeowners. Our insurance offers coverage for your home, other structures, personal belongings, loss of use, personal liability, and medical payments. Learn more about what our policies do and don't cover.
You can check to see which kind of policy you have by looking at the top of the document. An HO-3 form should say “HO-3,” “Homeowners 3,” or “Special Form” at the top.
Don’t have an HO-3 policy? Get a quote from Kin and see if we can get you more coverage at a better price than you’re currently paying.
If you own a condo, don’t despair! We also offer HO-6 coverage for your home. You can learn more about it on our condo insurance page.