HO 00 03 is the Homeowners 3 - Special Form, commonly called an HO-3. It combines property and personal liability coverage for an eligible owner-occupied residence. Its defining split is easy to miss: the dwelling and other structures generally receive open-peril coverage, while personal property is insured only for named causes of loss.
What property does HO 00 03 cover?
Coverage A applies to the dwelling, while Coverage B applies to eligible other structures. These cover direct physical loss unless excluded. Coverage C applies to personal property owned or used by an insured, but only when a listed peril causes the loss. Coverage D can pay qualifying additional living expense, fair rental value, or prohibited-use loss after a covered event.
The Texas Department of Insurance describes the HO 00 03 building coverage and the separate named-peril approach for personal property in its approval order.[1] A specimen 10 00 policy from the Insurance Information Institute shows how definitions, property coverages, exclusions, conditions, and liability sections work together.[2]
Why is HO-3 not the same as all-risk insurance?
Open-peril coverage means the insured does not need to find the cause in a short covered-peril list for the dwelling. It does not mean every kind of damage is covered. The form excludes or limits losses involving flood, earth movement, neglect, ordinance or law, power failure, deterioration, faulty work, and other causes, with important exceptions.
Personal property remains named-peril unless an endorsement broadens it. Valuable jewelry, money, securities, firearms, watercraft, and business property can also face special dollar limits.
What liability coverage is included?
Coverage E addresses qualifying claims for bodily injury or property damage for which an insured is legally liable. Coverage F provides limited medical payments to others without requiring the same liability determination. Motor vehicle, watercraft, aircraft, business, professional-services, and intentional-injury exclusions can create substantial gaps.
Review occupancy as well as limits. A long vacancy, regular short-term rental, home business, or move away from the residence premises can change eligibility or coverage. The current ISO multistate form list identifies HO 00 03 03 22, while several states continue to use earlier editions.[3]
Frequently asked questions
What is the main difference between HO 00 03 building and contents coverage?
The dwelling and other structures generally use an open-peril approach. Personal property is generally covered only for named perils.
Does an HO-3 cover flood?
Standard homeowners forms exclude flood. Separate flood insurance may be needed.
Does HO 00 03 automatically pay replacement cost for belongings?
Not necessarily. Personal property valuation depends on the policy and endorsements, such as HO 04 90.
Why does the edition date matter?
Revisions can change definitions, exclusions, conditions, and available endorsements. Read the edition attached to the actual policy and state amendments.
This guide is for educational purposes and summarizes standard ISO policy concepts in original language. Form numbers and titles are used only for identification. Menlo Insurance Services is not affiliated with or approved by Insurance Services Office, Inc. Your policy, declarations, state amendments, and attached endorsements control. Talk to a licensed agent about your home.
References
- 1.Texas Department of Insurance. “Order Approving ISO Residential Property Policy Forms.” https://www.tdi.texas.gov/orders/co020741.html ↩
- 2.Insurance Information Institute. “HO 00 03 10 00 Homeowners 3 - Special Form Sample.” https://www.iii.org/sites/default/files/docs/pdf/HO3_sample.pdf ↩
- 3.FC&S Expert Coverage Interpretation. “ISO Homeowners Forms List.” https://www.propertycasualty360.com/fcs/2024/06/05/iso-homeowners-forms-list-2/ ↩