There are two main coverage types – named peril and open peril. A peril is something that causes damage
to you, your home, or your possessions.
Named peril simply means that all the possible threats and hazards you may encounter are fully listed on
Open peril means that things not covered in your policy will be listed. This type of policy provides more
The three policy types are HO-2, HO-3 and HO-5.
An HO-2 policy is very basic homeowners insurance. It only covers named perils for your dwelling structures
and personal property. A named peril HO-2 policy covers:
Windstorms and hail
Damage caused by vehicles
Damage from aircraft
Weight of ice, snow, and sleet
Freezing of household systems
Water damage: overflow or discharge
Damage from artificially generated electrical current
Sudden tearing, cracking or bulging of home
An HO-3 policy is the most commonly chosen policy in the United States. It covers your dwelling and other
structures on your property as open-peril. The contents of your home are covered on a named-peril basis.
A HO-5 policy covers your dwellings and your personal property on an open-peril basis.
Regardless of the type of policy you have, most insurance companies won’t insure for:
Natural disasters such as flooding, earthquakes and landslides
Wear and tear
Name Property Coverage Personal Property Coverage
HO-2 Broad Form Named Perils Named Perils
HO-3 Special Form Open Perils Named Perils
HO-5 Comprehensive Form Open Perils Open Perils