HOMEOWNERS POLICIES · 5 MIN READ
The Six ISO Homeowners Forms
The ISO homeowners program is a family of package policies that combine property coverage (Section I) and liability coverage (Section II) in one contract. What separates the forms from each other is who they are designed for and how they treat perils. A named-peril form covers only the causes of loss specifically listed; an open-peril (special) form covers any direct physical loss unless it is specifically excluded. Open-peril treatment is broader and also shifts the burden of proof: the insurer must point to an exclusion rather than the insured proving a listed peril occurred. The lineup: HO-2 (Broad Form) is named perils on both the dwelling and personal property. HO-3 (Special Form), the most commonly sold, is open peril on the dwelling and other structures but reverts personal property to a named-peril list. HO-4 (Contents Broad Form) is the renters policy — no dwelling coverage, named-peril contents plus liability. HO-5 (Comprehensive Form) is the only standard form that applies open-peril treatment to BOTH the dwelling and personal property. HO-6 (Unit-Owners Form) serves condominium owners, insuring interior building items and contents on a broad named-peril basis unless endorsed. HO-8 (Modified Form) exists for older homes whose replacement cost far exceeds market value; it uses a reduced named-peril list and settles losses at actual cash value. Exam questions constantly test which form pairs with which occupant and which side of the policy is open peril. Memorize the grid: dwelling treatment, contents treatment, and target buyer for each form.
Watch it instead: The Six Homeowners Forms: Who Gets Which6:07 interactive video · pauses twice to check youKey rules
HO-3 is open peril on the dwelling but named peril on personal property
Coverage A and B receive special-form treatment while Coverage C is settled under a broad named-peril list. Endorsement HO 04 06 can upgrade Coverage C to open peril.
Why the exam cares: The split treatment inside a single HO-3 policy is the single most tested homeowners fact; distractors claim HO-3 is open peril throughout.
HO-5 is the only standard form with open-peril dwelling AND contents
The Comprehensive Form applies special-form treatment to Coverage A and Coverage C alike, making it the broadest package. An HO-3 plus HO 04 06 produces equivalent contents protection.
Why the exam cares: Questions ask which form extends open perils to both property parts; only HO-5 qualifies without endorsement.
HO-4 is the renters form: contents and liability, no dwelling coverage
Tenants own no building, so the form provides named-peril personal property coverage, loss of use, and full Section II liability. Building Additions and Alterations coverage protects tenant improvements.
Why the exam cares: Exams pair occupancy status to form; a tenant buying dwelling coverage is a classic wrong answer.
HO-6 insures the condo unit-owner's interior building items and contents
Coverage A on the HO-6 is a small limit for items like fixtures, cabinetry, and improvements the association's master policy does not insure, written on broad named perils unless endorsed to special form.
Why the exam cares: Testers probe how the HO-6 dovetails with a bare-walls master policy and which endorsement upgrades it to open peril.
HO-8 uses reduced named perils and ACV settlement for older homes
When replacement cost greatly exceeds market value, the HO-8 Modified Form avoids moral hazard by covering a shorter peril list and paying actual cash value rather than replacement cost.
Why the exam cares: The exam tests why an older ornate home cannot get standard replacement-cost treatment and which form solves the problem.
Numbers to memorize
- 16 named perils — the broad-form peril list that applies to Coverage C personal property under the HO-3
Common traps
- Confusing HO-3 with HO-5 — remember HO-3 is open peril on the dwelling only, while HO-5 is open peril on both dwelling and contents.
- Confusing named-peril with open-peril burden of proof — remember under open peril the insurer must prove an exclusion applies; under named peril the insured must show a listed peril caused the loss.
- Confusing HO-4 with HO-6 — remember HO-4 is for tenants with no building interest, while HO-6 is for condo unit-owners who own interior building items needing a small Coverage A.
- Confusing HO-8 with HO-2 — remember HO-8 is the modified form for older homes with a reduced peril list and ACV settlement, not simply another broad form.
Build a three-column grid (form, dwelling perils, contents perils) and rewrite it from memory the morning of the exam — most form questions are answered straight off that grid.
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