HO3 vs HO5

HO3 vs HO5 Homeowners Policies

  • What are the differences, and why are they important?
  • Is the HO-5 really that much better?
  • What to do?
The HO-3 has been the standard homeowners policy since the 1950’s, and is adequate for most home owners’ personal insurance needs. For older homes, it’s still a good choice. But today, there’s something better, particularly for newer, well maintained homes. It’s known generically as the HO-5.Homeowners InsuranceWhile the HO-5 is offered only on a limited basis – to newer homes, those with higher values, those meticulously maintained – we at Murphy Insurance believe that if you’re eligible, you should protect yourself with this broader policy form. In some cases, depending the year of construction, the town you live in, your claims history, and other rating factors, you can buy an HO-5 for about the same cost as a traditional HO-3.

The starting point of the HO-5 is how it covers your Contents, (also known as Personal Property on your policy page). While the HO-3 covers your Contents on a “named perils” basis, the HO-5 covers contents on an “open perils” basis.

In addition, many of the limitations of the HO-3 are removed, existing coverages expanded, and new coverages added. Several common provisions that have had to be added to the HO-3 by specific endorsement are included automatically in the HO-5. For example, with an HO-5, you don’t have to check to see if “replacement cost” coverage on your home and on your contents has been added to your policy. The HO-5 includes it automatically.

Since you don’t know what the future brings, if you’re eligible for an HO-5, get it. 

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