HO-5 insurance

HO-5 insurance, also known as a comprehensive homeowners insurance policy, offers the broadest form of home protection available to homeowners. It provides open perils coverage not only for your home’s structure but also for your personal belongings, something that most other policies don’t include.

This policy type is particularly useful for individuals with high-value homes or expensive personal property who want extensive protection with fewer gaps. If you’ve been wondering what an HO-5 homeowners insurance policy covers, or whether HO-5 insurance is worth the cost, this guide breaks it down in plain language

What is HO-5 homeowners insurance?

HO-5 insurance is a form of homeowners coverage that protects both your dwelling and personal property against all risks, unless the risk is specifically listed as excluded. This is known as open perils coverage, and it’s one of the key ways HO-5 stands out from other home insurance policy types, such as HO-3.

Where HO-3 only offers open perils protection for your dwelling and named perils for your belongings, HO-5 provides open perils coverage across both categories. That means if something unexpected damages your property and it’s not listed in the exclusions, it’s covered.

What does an HO-5 policy cover?

An HO-5 policy typically includes broad, all-risk protection for both your home and your belongings. Unlike other types of homeowners insurance, this policy safeguards you against anything not explicitly excluded. Here’s a closer look at what that includes:

• Dwelling coverage – Protect your home’s structure from all causes of loss, unless excluded.
• Personal property coverage – Cover your possessions, including furniture, electronics, clothing and jewelry against the same wide range of risks.
• Other structures – Include detached buildings such as sheds, garages or fences.
• Loss of use – Pay for temporary housing if your home becomes uninhabitable due to a covered loss.
• Personal liability – Protect you if someone is injured on your property and you’re found responsible.
• Medical payments to others – Cover medical costs for guests injured on your property, regardless of fault.

This high level of protection makes HO-5 a strong option for those seeking comprehensive homeowners insurance with robust coverage for both the home and everything inside it.

Who should consider HO-5 homeowners insurance?

HO-5 coverage is ideal for homeowners who want more than just the basics. If you have a newer or high-value home, or own belongings that would be costly to replace, this type of policy can offer extra reassurance. It’s especially useful for anyone looking to reduce surprises during the claims process, including:

• Homeowners with high-value or newer homes
• Individuals who own expensive personal items like fine art, electronics or jewelry
• Families wanting maximum protection for personal property
• Homeowners in low-risk areas (many insurance companies only offer HO-5 in certain ZIP codes)

One of the main benefits of HO-5 insurance for high-value homes that would be expensive to repair or replace is the peace of mind it offers by minimizing the risk of a claim denial due to uncovered perils.

Difference between HO-3 and HO-5 insurance policies

Understanding the difference between HO-3 and HO-5 homeowners insurance policies can help explain why HO-5 typically comes with a higher premium. HO-5 offers more comprehensive protection, especially for personal belongings.

Dwelling coverage

Both HO-3 and HO-5 policies cover your home's structure under an open perils model. This means damage to the dwelling is covered for all causes except those specifically excluded in the policy.

Personal property coverage

This is where HO-5 stands out. 

HO-3 policies cover personal belongings for named perils only. You’re only protected if the cause of damage is one of the events listed in the policy. 

HO-5 policies cover personal property using an open perils approach, offering broader protection for your belongings.

Claim settlement

HO-3 typically reimburses personal property losses based on actual cash value, unless you upgrade your policy. 

HO-5 policies usually include replacement cost coverage, which means you get reimbursed for what it costs to replace the item, not its depreciated value.

Coverage limits

HO-3 provides standard coverage limits, which may require endorsements or riders for higher-value items. 

HO-5 often includes higher built-in limits for valuables, offering more protection without needing extra endorsements.

Premium cost

HO-3 is generally more affordable, making it a popular choice for budget-conscious homeowners. 

HO-5 comes with a higher premium, but in return, it delivers broader, more complete coverage. This is particularly valuable if you have high-end items or want peace of mind across a wider range of risks.

In short, if you're looking for more robust protection, especially for your personal belongings, an HO-5 policy is often considered to be the gold standard in homeowners insurance.

What’s excluded from HO-5 insurance?

Even the most comprehensive policies have limits, and HO-5 is no exception. While it offers wide-ranging protection, there are still a few risks that aren’t covered by default. HO-5 typically excludes:

• Earthquake damage
• Flooding
• War or nuclear hazard
• Damage from neglect or poor maintenance
• Intentional damage caused by the policyholder

To protect against these excluded perils, you can purchase add-on policies or endorsements, such as flood insurance or earthquake coverage.

Benefits of HO-5 insurance

There are several reasons why homeowners choose an HO-5 policy. If you’re looking for more protection, simpler claims, and greater peace of mind, this policy delivers on all fronts. Here’s why it might be a smart fit for your home:

• Broad protection – You’re covered for more scenarios, even ones you might not expect.
• Fewer claim disputes – Because personal belongings are covered under open perils, it’s easier to get reimbursed.
• Replacement cost coverage – Most HO-5 policies automatically include replacement cost, which pays to replace items at full value, not just what they were worth after depreciation.
• Higher limits – Categories like jewelry, electronics or collectibles often have higher default limits under HO-5.

If you’re wondering how to choose between HO-3 and HO-5 homeowners insurance, consider whether you’d be comfortable replacing your belongings out of pocket if something unexpected isn’t covered under an HO-3.

How to get an HO-5 policy

HO-5 policies are typically available for single-family homes in good condition, located in areas with lower-than-average risk. Insurance companies may also require a higher credit score or certain construction features like newer roofing or updated plumbing and electrical.

If you’re looking to switch policies or apply for a new one, talk with an advisor about whether your property qualifies for HO-5. Comparing HO-5 insurance coverage options or checking if HO-5 is available in your state can also help you understand your eligibility.

HO-5 homeowners insurance offers the broadest protection you can get in a standard homeowners policy. From open perils coverage to replacement cost protection and higher limits for valuables, it’s designed for homeowners who want fewer surprises.

While HO-5 may come with a higher premium than HO-2 or HO-3, the additional coverage can save you significantly in the event of a claim. If you value comprehensive protection, simplified claims, and a streamlined policy, HO-5 may be the right fit.

At VIU by HUB, we’re here to help you understand your options, compare policies side by side, and make the best decision for your home and your future.