What Is the Difference Between HO-3 and HO-5? | NJM

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What Is the Difference Between HO-3 and HO-5?

Both HO-3 and HO-5 are types of homeowners insurance policies that cover damage to your dwelling and other structures from all but excluded causes of loss. The main difference is what kinds of damage each policy covers for personal property.

Both types of homeowners insurance policies include coverage for your dwelling, other structures on your property, personal property, loss of use, personal liability, and medical payments to others. The primary difference between the two policy types is how claims are settled for your belongings.

To understand the difference, you'll need to know the terms named perils and open perils (special form).

An insurance policy with named perils coverage will only cover losses caused by perils specifically named in the policy.

Named perils can include:

  • Fire
  • Lightning
  • Theft

Review your policy for a complete list of covered perils.

An insurance policy with open perils coverage will pay for any damage to the insured property unless the policy specifically excludes the cause of loss.

HO-3 (Special Form) Homeowners Insurance

The HO-3 (special form) policy provides coverage on the following bases:

  • Dwelling: Open perils
  • Other Structures: Open perils
  • Personal Property: Named perils

HO-5 (Comprehensive Form) Homeowners Insurance

The HO-5 (comprehensive form) policy provides coverage on the following bases:

  • Dwelling: Open perils
  • Other Structures: Open perils
  • Personal Property: Open perils

Policyholders pay a higher premium for an HO-5 in return for broader coverage, such as losing your suitcase or accidentally knocking your television over.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.