Homeowners Form Codes

Homeowners form codes are standardized designations that describe the structure and coverage breadth of a homeowners insurance policy. The form code (HO-1 through HO-8) tells you how coverage is triggered, which types of losses are covered, and how broadly protection applies to both the structure and your personal belongings. The form code is one of the most important quality indicators on a homeowners policy, yet most policyholders have never looked for it on their dec page.

HO-1 is a basic named-peril form covering about 11 listed causes of loss. It is rarely sold today. HO-2 is a broader named-peril form covering around 16 perils. HO-3 is the most widely sold form in the country: open-peril coverage on the dwelling structure (all causes except those specifically excluded) paired with named-peril coverage on personal property (only listed causes covered). HO-5 is the broadest standard form, providing open-peril coverage on both the structure and personal property. It closes more claims for contents because it covers unlisted causes of damage rather than requiring the loss to match a named peril. HO-6 is written for condo unit owners, covering the interior of the unit, personal property, and personal liability. HO-8 is for older historic homes where market value is well below rebuild cost.

The practical difference between HO-3 and HO-5 shows up most on personal property claims. On an HO-3, your laptop that slides off the table and breaks from the impact may not be covered because accidental impact is not a named peril on the standard form. On an HO-5, the same loss is covered unless specifically excluded. Upgrading from HO-3 to HO-5 typically costs 10 to 20 percent more in premium and closes a meaningful set of real-world contents coverage gaps that most policyholders would expect to be covered anyway.