Homeowners policy forms

Homeowners insurance is sold through a set of standardized HO forms, each designed for a different living situation and level of coverage. Every form packages property coverage (the dwelling, other structures, personal property, and loss of use) with liability coverage (personal liability and medical payments to others) in a single policy.

The forms differ mainly in how perils are covered. The HO-2 (broad form) covers the dwelling and personal property against a list of named perils — only the causes of loss specifically listed are covered. The HO-3 (special form), the most commonly sold, covers the dwelling on an open perils basis (everything except what is specifically excluded) while covering personal property on a named perils basis. The HO-5 (comprehensive form) extends open perils coverage to both the dwelling and personal property.

The remaining forms fit particular occupants. The HO-4 is the tenant or renters form: it covers a renter's personal property and liability but not the building itself. The HO-6 is the condominium unit-owners form, covering personal property plus the interior walls and improvements of the unit. The HO-8 is a modified form for older homes whose replacement cost would far exceed their market value, typically paying losses on an actual cash value or functional replacement basis.

State property, personal lines, and property & casualty licensing exams all test the HO forms. Know which form matches each occupant (owner, renter, condo owner), which forms are named perils versus open perils, and how the HO-3 splits its treatment of the dwelling and personal property.