An HO-5 policy — often called a comprehensive form — is a premium homeowners insurance policy that covers both your dwelling and your personal property on an open-peril basis, meaning everything is covered unless specifically excluded. Compared to the standard HO-3, it broadens coverage on belongings and typically settles them at replacement cost rather than actual cash value.
How it works
The HO-5 has the same six-part structure as other homeowners forms — dwelling, other structures, personal property, loss of use, liability, and medical payments — but removes the HO-3's main asymmetry. On an HO-3, your belongings are covered only against a list of named perils; on an HO-5, they get the same open-peril treatment as the house, so any accidental direct physical loss is covered unless an exclusion says otherwise. That flips the burden of proof in your favor at claim time.
Example (illustrative numbers): A homeowner accidentally knocks a $2,000 television off its stand while moving furniture. "Dropping your own TV" is not on the HO-3's named-peril list for contents, so an HO-3 would typically not cover it. Under an HO-5's open-peril contents coverage, accidental physical loss is covered unless excluded — so the claim would generally be paid at replacement cost, minus the deductible. Numbers are illustrative only, and specific outcomes always depend on the policy language.
Why it matters for your policy
The HO-5 is the form independent agents often recommend for homeowners who want the fewest surprises at claim time, and it is standard in high-value home programs — see our review of National General Premier for high-value homes for an example of how carriers build on this chassis. Practical notes:
- Eligibility is tighter: Carriers generally reserve HO-5 forms for newer, well-maintained homes in protected areas. Not every home qualifies.
- Price the gap: The HO-5 costs more than an HO-3, but the difference is often smaller than people expect — worth quoting both.
- Sub-limits still apply: Open peril does not mean unlimited. Jewelry, collectibles, and similar categories still carry special sub-limits, and standard exclusions like flood and earthquake still apply.
Carriers name and modify these forms differently by state, so confirm the peril basis and contents settlement on the actual policy, not the marketing name.
Have questions about whether your home qualifies for HO-5 coverage? Better Choice Insurance Group is an independent agency based in St. Charles, Illinois, licensed in 14 states. We’ll explain your options in plain English and compare coverage across our carriers — free, no pressure.
Related terms
- HO-3 Policy — The most common homeowners form, with named-peril coverage on contents.
- Named Peril vs. Open Peril — The coverage distinction that separates the HO-5 from the HO-3.
- Replacement Cost — The settlement basis HO-5 policies typically use for personal property.
- Scheduled Personal Property — Item-by-item coverage for valuables that exceed policy sub-limits.
- Personal Property Coverage — The contents coverage the HO-5 upgrades to open-peril.
Frequently Asked Questions
Is an HO-5 policy worth the extra cost?
For many homeowners, yes - the open-peril contents coverage and replacement cost settlement remove the most common sources of claim disputes, and the premium difference over an HO-3 is often modest. The honest answer comes from quoting both forms on your specific home and comparing the numbers side by side.
Why can't I get an HO-5 policy for my home?
Carriers typically limit HO-5 eligibility by the home's age, condition, roof, location, and sometimes insurance score. An older home or one with prior claims may only qualify for an HO-3. Requirements differ significantly between carriers, which is one reason to shop the form across multiple markets.
Does an HO-5 cover floods and earthquakes?
No. Open peril means covered unless excluded, and flood and earthquake are standard exclusions on the HO-5 just as on the HO-3. Both require separate policies or endorsements. The HO-5's advantage is on accidental losses to your belongings, not on the major excluded catastrophes.
Last reviewed: August 2026 · Reviewed by Evan Larson, Licensed Insurance Agent