HO3 vs HO5

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What is an HO3?

An HO3 policy is the minimum amount of homeowners insurance that has a broad range of coverage. HO3 has a limitation for its contents coverage. This type of coverage is called named perils. HO3 policies typically have a list of 16 named perils that they will cover your personal property from damage. Any other type of damage that isn't listed on your policy, will not be protected. 

 Examples of common named perils include:

  • Fire or lightning
  • Theft
  • Vandalism
  • Windstorm
  • Falling objects and more

An open peril policy would be used for your property's structure. An open peril gives you more freedom than a named peril because there are less limitations. Unlike named perils, there is no list to review on this type of policy. If your insurance doesn't exclude the type of damage, you are protected.


What is an HO5?

HO5 policies have a more expanded coverage and less limitations compared to HO3 policies. With an HO5, the contents and structure of the home are protected under open peril. Examples of the personal belongings are covered include: 


  • Jewelry

  • Personal business property

  • Furniture

  • Clothing

  • Electronics and more


Which one is right for you?

HO3 and HO5 both have some similarities but the differences depend on your personal belongings. HO3 policies have more limitations due to its content coverage being under named perils. HO5 has a greater range of protection when it comes to the property’s personal items. Deciding on what is right for you depends on the amount of personal property you want to insure. 


 Call us for a Quote

Elementary is focused on helping you increase your savings, raising your deductible, providing you with discounts and applying credit as much as possible. Learn more about Elementary homeowners insurance products, or if you’re ready to take the next step, call (813) 212-8505 for a FREE no obligation quote.


References:

https://franchinoinsurance.com/homeowners-policy-form-comparison-ho3-and-ho5/


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