4.2 Homeowners Policy Forms (HO-2 through HO-8)

ISO publishes standardized homeowners forms identified by number. The exam tests two things about each: (1) who it is for, and (2) the peril basis — open perils (covered unless excluded) versus named perils (covered only if the cause is listed). Learn the table below so well you can fill it from memory.

All Current HO Forms at a Glance

Exam Tip: HO-1 (Basic Form) is effectively obsolete and not offered in most states. If you see it as a distractor, it is wrong unless the question explicitly references it.

Open Perils vs. Named Perils — the Burden of Proof

This distinction decides who must prove the claim:

• Named perils (HO-2, contents of HO-3, HO-4, HO-6, HO-8): The insured must prove the loss was caused by a peril on the list. If the cause is not listed, there is no coverage.
• Open perils / 'special' (dwelling of HO-3, all of HO-5): Coverage applies to any cause of loss except those specifically excluded. The insurer must prove an exclusion applies to deny the claim — a major advantage for the insured.

The Named-Peril List (Memorize the Categories)

The broad named-peril list used by HO-2 and the contents of HO-3 includes 16 perils:

1. Fire or lightning
2. Windstorm or hail
3. Explosion
4. Riot or civil commotion
5. Aircraft
6. Vehicles
7. Smoke
8. Vandalism or malicious mischief
9. Theft
10. Falling objects
11. Weight of ice, snow, or sleet
12. Accidental discharge or overflow of water or steam
13. Sudden and accidental tearing/cracking/burning of a heating or A/C system
14. Freezing of plumbing, heating, A/C
15. Sudden and accidental damage from artificially generated electrical current
16. Volcanic eruption

HO-3 — The Workhorse

HO-3 is the answer to any "most common" or "standard" homeowners question. It pairs open perils on the structure (Coverages A and B) with named perils on contents (Coverage C). This split keeps premiums lower than HO-5 while still giving broad building protection — exactly the value most buyers want.

HO-5 — Broadest Unscheduled Coverage

HO-5 upgrades contents to open perils too. The practical benefit: if a single expensive item is mysteriously damaged, the insured does not have to prove a named cause; the insurer must prove an exclusion. HO-5 typically costs noticeably more and is targeted at higher-value homes.

HO-4 (Renters) and HO-6 (Condo)

For a condo, the HOA's master policy insures the building exterior and common areas; the HO-6 covers the unit interior, owner-installed improvements, contents, and loss assessment (the owner's share of a master-policy deductible or shortfall).

HO-8 — Older and Historic Homes

HO-8 solves the problem of a home whose replacement cost (rebuilding with original craftsmanship) vastly exceeds its market value. Instead of paying to recreate hand-carved molding, HO-8 settles on a functional replacement cost basis using modern equivalent materials, and is written on a named-peril basis.

Exam Trap: Do not pick HO-3 or HO-5 for a historic home where replacement cost greatly exceeds market value — the intended answer is HO-8.

How HO-3 and HO-5 Actually Differ on a Claim

Because the dwelling is open-peril on both HO-3 and HO-5, the only real difference is contents (Coverage C). Picture a homeowner whose expensive camera is found cracked with no known cause. Under HO-3 the insured must show the damage came from a listed peril such as theft, vandalism, or a falling object; a mysterious crack with no listed cause is denied. Under HO-5, the insurer must instead prove an exclusion applies, so the same mysterious crack is generally paid. That single shift in burden of proof is why HO-5 commands a higher premium and is marketed to owners of high-value possessions.

Mobile Homes and the Condo/Renter Edge Cases

Manufactured (mobile) homes are not eligible for a standard HO-3; they use a mobile-home endorsement (historically the HO-7 designation) that adapts the homeowners form to a transportable dwelling. For condos, remember the two-policy structure: the association's master policy can be written 'bare walls,' 'single entity,' or 'all-in,' which directly changes how much Coverage A (walls-in) the HO-6 owner needs. A producer who reads the master policy declarations can right-size the HO-6 building limit and the loss-assessment coverage — a common applied-knowledge question on the exam.