Three Policy Forms, Three Different Levels of Protection
HO-3 is the standard policy form for most single-family homeowners, covering the dwelling broadly but covering personal belongings only against specifically listed causes of loss. HO-5 is a broader version of the same idea, covering both the dwelling and personal belongings against a wide range of causes unless specifically excluded, which generally means more protection at a higher cost. HO-6 is an entirely different policy built for condo and co-op owners, covering the interior of the unit and personal belongings, since the building structure itself is covered separately by the condo association's master policy.
HO-3 is by far the most common homeowners policy form in the country, built for single-family homeowners who want solid, well-rounded coverage without paying for the broadest possible protection. Under an HO-3 policy, the dwelling itself is covered on an open peril basis, meaning it is covered against any cause of loss except what is specifically excluded, while personal belongings are covered on a named peril basis, meaning only the specific causes of loss listed in the policy are covered. This asymmetry is the defining feature of an HO-3 policy and the main thing that distinguishes it from HO-5.
HO-5 removes that asymmetry by covering personal belongings on the same open peril basis as the dwelling, which closes a real gap that HO-3 leaves open. If a type of damage occurs that is not on the named peril list for personal property, an HO-3 policy simply will not pay for it, while an HO-5 policy generally will, unless that specific cause is excluded. HO-5 policies also commonly come with higher standard coverage limits, making them a common choice for higher-value homes or homeowners who want the broadest protection available without customizing individual endorsements.
HO-6 serves a completely different situation rather than sitting above or below HO-3 and HO-5 on the same spectrum. Condo and co-op owners do not own the building structure itself, which is covered by the condo association's master policy, so an HO-6 policy is built specifically to cover what the owner is actually responsible for: the interior of the unit, including built-in fixtures and any upgrades, along with personal belongings and liability. Comparing HO-6 to HO-3 or HO-5 directly does not quite make sense, since it is solving a different problem entirely rather than offering more or less of the same coverage. For the full breakdown of what any of these forms actually cover coverage category by coverage category, see what homeowners insurance covers.
Table of Contents
| HO-3 | HO-5 | HO-6 | |
|---|---|---|---|
| Best for | Most single-family homes | Higher-value homes or broader protection | Condo and co-op units |
| Dwelling coverage basis | Open peril | Open peril | Not applicable, unit interior only |
| Personal property coverage basis | Named peril | Open peril | Named peril, typically |
| Typical cost | Standard baseline | Higher than HO-3 | Generally lower, since it covers less |
| Structure coverage | Full dwelling | Full dwelling | Interior of unit only |
For most single-family homeowners, HO-3 remains the standard choice, offering solid protection at a lower cost than HO-5, and the personal property gap it leaves open rarely becomes a real problem for typical households. HO-5 is worth the additional cost for homeowners with higher-value belongings, a higher-value home overall, or simply a preference for the broadest available protection without needing to think carefully about which specific perils are and are not listed.
HO-6 is not really a choice at all in the sense that HO-3 versus HO-5 is, since it applies specifically to condo and co-op ownership rather than being an upgrade path from the other two. If you own a condo, HO-6 is the relevant policy type, and the more useful comparison is not against HO-3 or HO-5 but against your condo association's master policy, to understand exactly where its coverage ends and your own HO-6 policy needs to begin.
HO-3 is by a wide margin the most commonly issued homeowners policy form in the United States, since it fits the typical single-family home situation well and offers a reasonable balance between cost and coverage breadth.
A condo needs HO-6 specifically, not a standard HO-3 or HO-5 policy, since those forms are built to cover an entire structure that a condo owner does not actually own. Attempting to insure a condo unit with a standard single-family policy form would leave a significant mismatch between what the policy covers and what the owner is actually responsible for.
The difference between HO-3 and HO-5 comes down to how broadly your personal belongings are protected, with HO-5 closing a real gap that HO-3 leaves open at a higher cost. HO-6 is not a competing option to either but a distinct policy type built for condo ownership specifically. Knowing which category your situation falls into, single-family homeowner deciding between coverage breadth, or condo owner needing the right form entirely, makes this a much simpler decision than the three-way naming might suggest. Once you have settled on a policy form, the next decision worth understanding is replacement cost vs actual cash value, since that choice affects how much any of these policies actually pay out when you file a claim.
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