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How an HO-3 Homeowners Insurance Policy Works Insurance.

Policies are meant to pay for property damage if it was caused by a covered risk.

The types of properties and perils that are covered by homeowner’s insurance policies vary. Policies are typically categorized as either “named-perils,” which only cover specific sources of loss, or “open-perils,” which cover all losses unless excluded.

The special form, or HO-3, homeowners insurance policy is a common type that combines the features of both types.

Similar to other types of homeowners insurance, an HO-3 policy consists of two parts:

Section I includes coverages for your property (A, B, C, and D) and liabilities (E and F) in Section II.

The following is a description of each coverage as well as the general limits that the majority of insurers will provide:

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