Which homeowners policy is the most widely used and recommended?

The HO-3 Special Form is the most widely used and recommended homeowners insurance policy for several reasons. This policy provides a comprehensive level of coverage that appeals to a broad range of homeowners. Specifically, it offers protection for the dwelling on an open perils basis, meaning it covers all risks of loss except those specifically excluded in the policy. This is advantageous because it gives homeowners peace of mind, knowing that they have coverage for a wide range of potential hazards.

Moreover, the HO-3 policy typically covers personal property on a named perils basis, which includes specific risks like theft, fire, and vandalism, while also incorporating liability coverage and additional living expenses in case the home becomes uninhabitable due to a covered event. Because of its balance between comprehensive coverage and affordability, the HO-3 Special Form is highly recommended by insurance professionals and is the standard homeowners policy for many individuals.

In contrast, the HO-8 Modified Form is designed for older homes and might not provide as extensive coverage as the HO-3. The HO-5 Comprehensive Form offers broader coverage than an HO-3 but is less common, and the H.O. 4 Broad Form Tenants is specifically tailored for renters rather than homeowners. These factors contribute to the