Homeowners: Know Your Insurance Options

Standard homeowners insurance policies have been called HO3 class insurance.  In most cases, the terms of this coverage have provided adequate replacement value insurance for the structure and contents.  Newer homes might qualify for the HO5 class insurance that offers more comprehensive coverage, without extensions and specific endorsements.


Certain attributes must exist for a property to qualify for the HO5 class of homeowners insurance.

  • Newer homes built after a certain year, which can vary by state
  • Higher resale home values
  • Meticulous maintenance of the home systems, internal condition and external appearance
  • Location of the house
  • Claims history on the property
  • Insurance rating factors


Contents coverage is the most notable difference between the HO3 and HO5 insurance classes.  “Named perils” basis is standard in the HO3 policy class.  “Open perils” basis is clearly stated in the HO5 policy documentation.

Limitations on the standard HO3 policy are removed while existing coverage categories are expanded, and new categories are added to the HO5 policy.  Replacement cost coverage is considered an endorsement on the HO3 policy, whereas, on the HO5 policy replacement cost is included.

For more information about HO5 homeowners insurance in Eagle, Idaho, contact Access First Insurance today!