HO-3 vs. HO-5 Homeowners Policies

HO-3 is the standard homeowners policy (open-peril structure, named-peril contents); HO-5 is a premium policy with open-peril coverage on both structure and contents.

By the Home & Dime Editorial Team · Updated 2026

HO-3

Most common. Structure is open-peril; belongings are named-peril; usually ACV or RCV on contents.

HO-5

Broader — open-peril on both structure and belongings, typically replacement cost. Costs more.

Frequently asked questions

Is HO-5 worth it?

For newer or higher-value homes wanting the broadest coverage, often yes.

What’s the main difference?

HO-5 covers your belongings on an open-peril basis; HO-3 doesn’t.

Related guides

• What does homeowners insurance cover?

Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.