HO3 and HO5 are two of the most common homeowners insurance types—but they’re not created equal. HO3 offers standard protection, while HO5 provides broader, more comprehensive coverage. Knowing the difference helps you make a smart, informed choice based on your home, belongings, and budget.
HO3: Standard Coverage
HO5: Broader Protection
Choose Based on Your Needs
The biggest difference lies in how personal belongings are covered. HO3 protects your home against many risks, but only named perils for your items. HO5, on the other hand, offers open-peril coverage for both your home and belongings—making it more robust.
HO3: Named Perils Only
HO5: Broader Item Coverage
Choosing between HO3 and HO5 depends on your home’s value, personal belongings, and risk tolerance. HO3 is cost-effective and reliable for most homeowners, while HO5 is better suited for those with high-value items or a desire for fewer coverage gaps.
Budget-Conscious Homeowners
Owners with High-Value Items
Newer, Well-Maintained Homes
When protecting your home, understanding HO3 vs HO5 insurance is key. HO3 offers solid protection at a lower cost, while HO5 provides broader coverage for both your home and belongings. If you want peace of mind, fewer limitations, and strong protection for high-value items, HO5 may be your best fit.
