Home & Property

HO-3 Policy

The most common homeowners insurance form, providing open-perils coverage on the dwelling and named-perils coverage on personal property.

Last reviewed: May 2026 · Editorial methodology

Definition

The HO-3 is the standard homeowners policy sold by the vast majority of U.S. insurers and covers single-family owner-occupied homes. It protects the dwelling structure (Coverage A) on an open-perils basis, meaning all causes of loss are covered unless specifically excluded — common exclusions include flood, earthquake, and normal wear and tear. Personal property (Coverage C) is covered on a named-perils basis, so only the 16 perils listed in the policy apply. Most HO-3 policies include liability protection under Coverage E and medical payments under Coverage F. Policyholders can add endorsements for water backup, scheduled jewelry, or equipment breakdown to fill common gaps. In high-risk coastal states like Florida and Louisiana, HO-3 availability has narrowed significantly since 2020, pushing many homeowners toward surplus-lines carriers.

Where this term matters

Home Insurance →/states →Claims Help Center →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Open Perils (All Risk)A coverage approach where all causes of loss are covered unless explicitly excluded in the policy.Named PerilsA coverage approach where only the specific causes of loss listed in the policy are covered.Coverage A (Dwelling)The homeowners policy section that covers the main structure of the home against damage from covered perils.Coverage C (Personal Property)The homeowners policy section that reimburses the policyholder for damaged or stolen personal belongings, such as furniture, electronics, and clothing.Coverage E (Personal Liability)The homeowners policy section that pays legal defense costs and judgments if the policyholder is found liable for bodily injury or property damage to others.Dwelling CoverageCoverage A on a homeowners policy — pays to repair or rebuild your home's physical structure.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

Get Insurance Updates

Occasional updates on insurance rules, coverage changes and new guides — and ways to save.

  • ✓State-specific insurance rule changes
  • ✓Seasonal enrollment deadline reminders
  • ✓Expert tips to lower your premiums
  • ✓New coverage options in your state

Free forever. Unsubscribe with one click. No spam, ever.

Important Disclaimer

This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.

← Back to Insurance Glossary (355 terms)