Homeowners Policy Forms Decoded: HO-3 vs HO-5 vs HO-6 vs HO-4 for the P&C Exam

Homeowners Policy Forms Decoded — HO-3 vs HO-5 vs HO-6 vs HO-4

If there's one topic that shows up on every P&C exam, it's homeowners policy forms. The exam doesn't just ask you to identify them — it gives you scenarios and expects you to know which form applies, what's covered, and what's excluded.

Here's a breakdown of the four most-tested HO forms, with the key distinctions that exam questions target.

1. HO-3 — Special Form (The Standard)

The HO-3 is the most common homeowners policy in the country. It's the one most people have.

Coverage on the dwelling (Coverage A) and other structures (Coverage B): OPEN PERILS. This means all causes of loss are covered unless specifically excluded. The burden of proof is on the insurer to show the loss was caused by an exclusion.

Coverage on personal property (Coverage C): NAMED PERILS. Only the perils specifically listed in the policy are covered. The burden of proof is on the insured to show the loss was caused by a listed peril.

Key exam point: The HO-3 gives you open perils on the building but named perils on the contents. That split is the #1 thing exam questions test.

Common exclusions on the dwelling side: flood, earth movement, war, nuclear hazard, neglect, intentional acts, wear and tear, faulty construction.

2. HO-5 — Comprehensive Form (The Upgrade)

The HO-5 is like an HO-3 but better. The critical difference: personal property (Coverage C) is also covered on an OPEN PERILS basis, not named perils.

So on an HO-5, both the dwelling AND personal property are open perils. This is broader coverage than the HO-3.

Key exam point: If a question says "the insured's personal property was damaged by a cause not listed in the policy's named perils" and asks whether it's covered — on an HO-3, the answer is no. On an HO-5, the answer is yes (unless specifically excluded).

The HO-5 also typically includes higher limits for certain classes of personal property and broader coverage for jewelry, electronics, and other valuables.

3. HO-6 — Condominium Unit Owners Form

The HO-6 is designed specifically for condo owners. It's different from the HO-3 and HO-5 because the condo association's master policy covers the building and common areas.

Coverage A on an HO-6 covers the interior walls, floors, and ceilings of the unit — basically everything from the walls in. It may also cover additions, alterations, and improvements made by the unit owner.

Coverage C covers personal property on a NAMED PERILS basis (same as HO-3).

Coverage D covers loss of use — if the condo is damaged and the owner can't live there, this pays for additional living expenses.

Key exam point: The HO-6 does NOT cover the exterior building structure. That's the association master policy's job. Exam questions often describe damage to the exterior and test whether you know the HO-6 doesn't respond.

Also important: The HO-6 includes coverage for the unit owner's share of loss assessment charges from the condo association (Coverage A addition), up to a specified limit. This is unique to the HO-6.

4. HO-4 — Contents Broad Form (Renters Insurance)

The HO-4 is for tenants — people who rent their home and don't own the building.

There is NO Coverage A (dwelling) and NO Coverage B (other structures) on an HO-4. The landlord's policy covers the building.

Coverage C covers personal property on a NAMED PERILS basis — same named perils list as the HO-3 and HO-6.

Coverage D covers loss of use — additional living expenses if the rented dwelling is damaged and uninhabitable.

Key exam point: If an exam question describes a renter whose apartment building is damaged by fire, the HO-4 covers the renter's personal property and additional living expenses — but NOT the building. The building is the landlord's responsibility.

Personal liability (Coverage E) and medical payments to others (Coverage F) are included on the HO-4, just like on the HO-3, HO-5, and HO-6.

Quick Comparison Chart

HO-3: Dwelling = open perils, Personal property = named perils. For homeowners. HO-5: Dwelling = open perils, Personal property = open perils. For homeowners (premium coverage). HO-6: Dwelling = interior only (walls-in), Personal property = named perils. For condo owners. HO-4: No dwelling coverage, Personal property = named perils. For renters.

Exam Strategy: How to Identify the Form

When you see a homeowners question on the exam, look for these clues:

1. "Condominium" or "condo" or "unit owner" signals HO-6. 2. "Renter" or "tenant" or "leases an apartment" signals HO-4. 3. "Comprehensive" or "broadest coverage" or personal property covered for "all risk" signals HO-5. 4. If none of those clues appear and it's a standard homeowner, it's likely HO-3.

Then check what they're asking about — dwelling vs personal property — and apply the open vs named perils rule.

The Bottom Line

The homeowners forms are less about memorizing lists and more about understanding the structure: who owns the property, what portion the policy covers, and whether coverage is open or named perils. Get that framework down and you can answer any HO question the exam throws at you.

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