Homeowner's INsurance - Ho-3, ho-5

HO3: Basic Open Perils Policy

The HO3 Home Policy is a hybrid of an open peril policy and a named perils policy. This is the most common type of home insurance policy. This policy covers your dwelling for anything and everything that could possibly happen to it other than explicitly excluded events, while your contents are covered for the sixteen perils covered in the HO-2 policy. The exclusions to the dwelling protection are listed below.

1. Earth Movement
2. Ordinance or Law (some coverage may be provided in your policy)
3. Water Damage (Sudden & Accidental Water Damage is automatically included)
4. Power Failure
5. Neglect
6. War
7. Nuclear Hazard
8. Intentional Loss
9. Government Action
10. Collapse (some coverage may be provided in your policy)
11. Mold, Fungus, or Wet Rot (some coverage may be provided in your policy)
12. Birds, Vermin, Rodents, Insects
13. Wear & Tear, Deterioration

If something happens to your home that is not specifically listed as one of the above exclusions, then it is covered under an HO-3 policy.

HO5: Full Open Perils Policy

The HO-5 Home Policy is full open perils on both the dwelling and the personal property. This means that your home is covered for anything and everything that could possibly happen to it, minus the same exclusions listed above in the HO-3 policy. The only difference is the HO-5 will cover your contents for open perils as well, while the HO-3 covers your contents for the sixteen named perils.