Paige Cerulli Last Updated On: June 23, 2025

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HO-3 Home Insurance Policy: What You Need to Know

When you buy a homeowners insurance policy, it’s important to understand just what that policy covers – and what it doesn’t cover. You may hear the term HO-3 as you shop for insurance. Sometimes called a “special form” insurance policy, HO-3 insurance typically applies to traditional homes instead of structures like condominiums or duplexes.

What is HO-3 Homeowners Insurance?

HO-3 insurance is the most common type of homeowners insurance available. It covers your home if it’s destroyed or damaged by events including natural disasters, theft, and fire. Its coverage extends to your personal belongings, too. This is the type of insurance that most mortgages require you to get, since it protects your investment in your home.

What Does HO-3 Cover?

An HO-3 homeowners insurance policy consists of multiple types of coverage:

Dwelling insurance covers the structure of your home and any other structures on your property, like detached garages or fences. This policy covers these structures from all events except for common exclusions, like floods or sewer backups.
Personal property insurance covers your personal belongings that might be damaged, stolen, or destroyed. Most policies have exclusions to the specific items that are covered, but some policies will even cover items if they’re damaged or stolen while off of your property. Refer to your insurance policy to understand just how your insurance works.
Personal liability insurance helps financially protect you from instances of bodily injury or property damage that could occur on your property. For example, if a guest slips and falls on ice on your porch, this coverage helps pay for their medical expenses, lost wages, legal fees, and death benefits. There are exceptions and exclusions, so be sure to thoroughly read your policy.

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How Much Does HO-3 Insurance Cost?

The cost of HO-3 insurance depends on many factors, including:

The value of your property
Your home’s location
Your credit score
Your past claim history
Your home’s age
Your insurance company

Since rates can vary so much, it’s best to get HO-3 insurance policy quotes to see the range of coverages and prices available for your home.

How to Save on HO-3 Insurance

There are many ways to save on your homeowners insurance coverage:

Make home improvements: Upgrades, like investing in a new roof, can help better protect your home and reduce an insurance company’s risk. As a result, many insurance providers will offer a discount for these upgrades, but contact your provider ahead of time to confirm.
Choose a higher deductible: Choosing a higher deductible will lower your premium, but you’ll need to have money set aside to pay that deductible if you file a claim.
Bundle insurance: If you’re buying homeowners and auto insurance, you may receive a discount if you purchase both policies from the same insurance company and bundle them together.
Ask about discounts: Many companies offer numerous other discounts, like pay in full and electronic statement discounts that can help lower your rates.
Shop around: You can get free homeowners insurance quotes online today to start comparing policies to find the best rates.

Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.