Share Agent Blog
09 Mar 2023
HO3 and HO5 policies are two of the most popular types of homeowners insurance policies in the United States. Both provide coverage for the structure of the home, personal property, liability, and additional living expenses if you can't stay in your home due to a covered loss. However, there are some key differences between the two types of policies.
HO3 Homeowners Insurance Policy:
HO3 is the most common type of homeowners insurance policy and offers "all-risk" coverage for your home and personal property, which means it covers all risks except those that are specifically excluded in the policy.
This policy usually covers the home's structure, personal belongings, and liability coverage. However, it does not cover damages that are caused by certain events such as earthquakes, floods, and landslides. To get coverage for these events, you would need to purchase separate insurance policies from insurance company.
HO5 Homeowners Insurance Policy:
HO5 is a more comprehensive policy than HO3 and provides "open-peril" coverage for your home and personal property, which means it covers all risks except those that are specifically listed in the policy.
This policy usually covers the home's structure, personal belongings, and liability coverage. However, it typically includes additional coverage for high-value items such as jewelry, fine art, and other collectibles. This type of policy may also include coverage for damages caused by events that are typically excluded in an HO3 policy, such as earthquakes and floods.
Overall, HO5 policies are generally more expensive than HO3 policies because they offer broader coverage. However, if you have expensive personal property or live in an area prone to natural disasters, insurance agents near me an HO5 policy may be a better choice for you.