Mastering HO Forms and Coverages: Your Must Have Cheat Sheet Guide for the Homeowners Chapter | Property & Casualty Exam

pandcpacademy
Dec 12, 2025
5 min read

Updated: Dec 30, 2025

Understanding the Homeowners Forms for the Property and Casualty (P&C) Exam can seem really tough, but it doesn't have to be. If you are preparing for your Insurance licensing exam; it is essential to understand how the HO Policy Forms differ, what they cover, and what they don't cover. These forms — labeled HO-1 through HO-8 (No Ho-7!) — are the backbone of homeowners coverage and testable concepts on the Property and Casualty Exam.

Grab the free P&C Exam Mastery Reference Guide here!

What Are HO Forms | Property and Casualty Homeowners Cheat Sheet

In short, the HO forms are the available Homeowners Insurance Policies that are available to insure a home.

Here’s a breakdown of the HO Forms — HO‑1 through HO‑8 — along with the key details you need to know for exam day!

HO-1 (BASIC Form) – Covers only specific NAMED Perils (3 basic fire perils, 8 extended perils, PLUS THEFT) Coverage is on an ACV basis.
HO-2 (BROAD Form) – Covers specific NAMED Broad Perils (3 basic fire perils, 8 extended perils, Theft, PLUS BROAD Perils) Coverage is on an Replacement Cost Basis. ONLY Added Broad EXCLUSION: Pollution
HO-3 (Special Form) – Covers Building on OPEN Peril Basis. Covers Personal Property on specific NAMED Broad Perils ( 3 basic fire perils, 8 extended perils, Theft, PLUS BROAD Perils) Coverage is on an Replacement Cost basis.

HO-4 (Renters/ Tenants Form) – Covers Personal Property on specific NAMED Broad Perils ( 3 basic fire perils, 8 extended perils, Theft to personal property, PLUS BROAD Perils). Coverage is on a Stated Valued Basis

HO-5 (Comprehensive Form) – Covers Building/Property AND Personal Property on an OPEN Peril basis. Only has Exclusions. Coverage is on an Replacement Cost basis.
HO-6 (Condo Unit Owners Form) – Covers Personal Property on specific NAMED Broad Perils (3 basic fire perils, 8 extended perils, Theft to personal property, PLUS BROAD Perils). Also Covers anything interior {Cabinets, plumbing, electrical fixtures, wall-to-wall carpeting} Coverage is on a Stated Valued Basis
HO-8 (Modified Coverage Form) – Older Victorian Homes. Replacement cost far exceeds market value. Covers only specific NAMED Perils (3 basic fire perils, 8 extended perils, PLUS THEFT). Coverage is on an ACV basis.

A key to passing the Property & Casualty exam is breaking down the information in simple, logical ways. Put the forms into chunks to simplify it. This can be applied to DP Forms (DP1, DP2, DP3) & HO Forms.

Send Me the Free Download

Denise at P&C provides a full comprehensive Cheat Sheet on the Homeowners section for the Property and Casualty Exam!

(1, 2 and 3) is your Basic, Broad and Special. These forms are seen throughout multiple sections. From Dwelling, Homeowners, Farm, to Commercial.

HO‑1 → Basic
HO‑2 → Broad
HO‑3 → Special

(3 & 5) are both ODD #'s & ONLY Forms that are on an open peril basis.

HO‑3 → Special Form. Open-Peril Coverage on-Dwelling. Named Peril on Personal Property.
HO‑5 → Comprehensive Form. Open-Peril Coverage on Dwelling AND Personal Property

(4, 6, and 8) are the EVEN numbers

HO‑4 → Renters Form → Think R.E.N.T is a 4 letter word
HO‑6 → Condo Owners Form → Think C.O.N.D.O.S is a six letter word
HO‑8 → Modified Coverage Form → Think 8 is the oldest Sibling (Oldest Form = Older Homes)

BASIC (DP-1 and HO-1)

BROAD (DP-2 and HO-2)

SPECIAL (DP-3 and HO-3)

OPEN PERIL / SPECIAL PERIL (HO-3 and HO-5)

RENT (HO-4)

CONDOS (HO-6)

OLDER HOMES (HO-8)

Understanding Homeowners Coverages for the P&C Exam (These Coverages Vary on a Dwelling Policy, ONLY Applicable for a HOMEOWNERS POLICY!)

This is your must have cheat sheet if you are studying for the Property and Casualty Exam and struggling with the Homeowners Chapter. Now that you understand the HO forms, the next key piece for the Property & Casualty Exam is knowing the Homeowners Coverages. Each homeowners policy includes several coverage parts, labeled A through F. A Homeowners policy is broken down into II parts. Coverages A through D is considered part I; that's the property coverage and Coverages E and F are considered part II; those are both your liability coverages.

Coverage A – Building / Dwelling
- Building coverage includes only the dwelling itself /anything permanently attached to the building. (ATTACHED garage, wall to wall carpeting)

Coverage B – Other Structures / Separate Structures / Appurtenant Structures
- Covers detached structures on the property (Separate garage, shed, fencing, in-ground swimming pool)
- Coverage is 10% of Coverage A

Coverage C – Personal Property / Contents Coverage (Be aware of Special Limits of Liability for certain high-value items (e.g., jewelry, electronics)
- Covers indoor/outdoor furniture, clothing, jewelry, electronics, appliances/refrigerator, lines/drapes, toys, books, sporting equipment.
- Coverage is Worldwide and on a Named-Peril Basis
- Coverage is 50% of Coverage A

Coverage D – Additional Living Expense / Loss of Use
- Pays for temporary living costs if the home becomes uninhabitable due to a covered loss. IE: Rental/Motel expenses, meals, while home is being repaired due to loss from a covered peril.
- NOT cover normal expenses, such as a mortgage.
- Coverage is 30% of Coverage A

Coverage E – Liability
- Covers legal liability for bodily injury or property damage to others both on & offsite.
- Pays for costs over & above the medical limit amount.
  •On-site example: A visitor falls down the stairs of the insured home.
  •Off-site example: The insured accidentally injures someone while playing basketball at a local gym.
- Minimum liability limit : $100,000 Per Occurrence
Coverage F – Medical Payments
- No Fault Coverage that pays medical expenses for guests, visitors, residence employees injured on the insured property. (Residence employees only while ON the premises & actively working)
- Primary intent: Avoid lawsuits
- Generally limited to the insured's premises. (Can extend to certain off-premises situations)
- Medical claims can be covered for up to 3 years from the date of the occurrence
- Minimum liability limit : $1,000 Per Person

Simplifying complex concepts into smaller, memorable chunks is KEY to retention!

For HO Policies, Coverages B, C, & D have a percentage of Coverage A (Dwelling/building coverage). Memorizing the numbers “10, 50, 30” can save time & mental energy on exam day.

Coverage B: 10% of Coverage A

Coverage C: 50% of Coverage A

Coverage D: 30% of Coverage A

Exam Day Tip: The exam writers may try to trick you by saying something like “Coverage D is 30% of Coverage B.” Always remember: These percentages are calculated based on Coverage A. NEVER B or C.