Difference between HO-3 and HO-5 insurance policies

There are many home insurance policies present. Different policies can suit the needs of different home owners. When it comes to HO-3 home insurance policy, then it is basically a combination of named peril policy and open peril. On the hand, when it comes to HO-5 policy, then it is an open peril policy. If you are looking for the best insurance policy, then first know about HO-3 vs HO-5 insurance policies.

What perils are named for ho-3 policy?

HO-3 policy basically covers many different threats. When it comes to the standard policy, then it provides the coverage for a few perils which are mentioned in the further article.

  • Accidental and sudden damage 
  • Riot and civil commotion 
  • Volcanic eruption 
  • Vehicles 
  • Freezing 
  • Smoke 
  • Explosion 
  • Lighting or fire 
  • Theft

Common excluded perils for both policies

While these policies can provide coverage for many different perils, but still, there are many things which are not covered by both options. So, if you think that such policies can provide cover for each and everything then let me tell you that it is absolutely wrong. There are some excluded perils for HO-3 as well as HO-5 policies. Some of them are mentioned below:

  • Nuclear accidents 
  • War 
  • Water damage by flood
  • Earth movement 
  • Industrial pollution 
  • Power failure 

Comparison of both policies 

There are many factors by which we can compare these policies. If you are finding the answer of which policy is better, then this is the best place. Now I am going to compare HO-3 and ho-5 policies according to many different factors.

  • Majority of the homeowners always pick the option of ho-3 because it is popular among them. in this, we can get coverage against many things. On the other hand,  if we talk about ho-5, then it can cover limited options. 
  • Ho-5 is a little bit expensive than ho-3. So, if you want the affordable option, then the latter one will be the best. 

Thus, you have collected the maximum information regarding these policies. Different people have different demands, so you can pick the one which can suit the requirements. This is no particular option for everyone. For some people, ho-3 will be the better option, and for others, ho-5 will be suitable.  So, it all ups to your needs.

Also read: https://homeownersinsurancecover.net/ho-3/