An HO-3 is the standard owner-occupied homeowners policy in the United States. It covers the structure on an open-peril basis (everything except what is excluded) and personal property on a named-peril basis (only the perils listed). Roughly 80% of single-family homeowners are written on HO-3.
HO-3 vs. other ISO homeowners forms
| Form | Dwelling Basis | Personal Property Basis | Typical Use |
|---|---|---|---|
| HO-1 Basic | Named-peril (10) | Named-peril (10) | Rarely sold; not accepted by lenders |
| HO-2 Broad | Named-peril (16) | Named-peril (16) | Older / lower-value homes |
| HO-3 Special | Open-peril | Named-peril (16) | Standard owner-occupied home |
| HO-5 Comprehensive | Open-peril | Open-peril | Newer / higher-value, preferred risk |
| HO-6 Condo | Limited (walls-in) | Named-peril (16) | Condo unit owners |
| HO-8 Modified | Named-peril, ACV | Named-peril | Older homes where RCV > market value |
HO-3 personal property named perils (the 16)
| Peril | Covered | Common Gotcha |
|---|---|---|
| Fire / lightning | Yes | — |
| Windstorm / hail | Yes | Separate % deductible may apply |
| Explosion, riot, aircraft, vehicles | Yes | — |
| Smoke | Yes | Excludes agricultural / industrial smoke |
| Vandalism, theft | Yes | Theft sublimits on jewelry, guns, cash |
| Falling objects, weight of ice/snow | Yes | Damage to awnings/fences often excluded |
| Sudden discharge of water | Yes | Excludes continuous leakage & backup |
| Freezing of plumbing | Yes | Only if heat maintained / water shut off |
| Artificial electrical current | Yes | Excludes damage to the appliance itself |
| Volcanic eruption | Yes | Excludes earthquake-related ground movement |
Even on an open-peril dwelling, the policy still excludes flood, earthquake, ordinance or law, intentional acts, mold beyond sublimits, wear and tear, and earth movement. Agents can quote endorsements or separate policies to close those gaps.