Confused about the difference between an HO-3 and HO-5 homeowners insurance policy? Read on to discover what policy works best for you and your family.

Comparing the Two Policies

Coverage: While the two policy types offer identical coverage for dwellings, the HO-5 policy is clearly superior in terms of personal property coverage.

Availability: Most homeowners will choose the HO-3 policy as it is available everywhere. The HO-5 policy is not available in all areas, and in some cases may only be offered for homeowners of newer, well-maintained homes.

Price: In most cases, the HO-3 policy is cheaper as the coverage is not quite as comprehensive as the HO-5.

Claims process: A big difference between the two policies is how the claims process is handled. In an open claims process, the burden is on the insurance company to prove that damage sustained was caused by something on the exclusion list. In an HO-3 policy, the burden is on the homeowner to prove that the damage was caused by a named peril.

Also Read: How Does Liability Work on a Home Insurance Policy?