In Texas, two homeowners can live on the same street, carry the same insurance company, and still have completely different coverage. The difference often lies in the form listed on their policy—HO-A, HO-B, HO-3, or HO-5.
Each form defines what situations qualify for coverage, which exclusions apply, and how much protection your personal property receives after a loss. Homeowners who skip over these details often find out the hard way that their policy covers less than expected.
At Richey Insurance, we’ve seen firsthand how confusing these terms can be, especially for families balancing affordability with protection. That’s why we always encourage clients to start with the form type—it sets the foundation for every other decision.
If you’re beginning your research, our Texas home insurance guide provides a simple breakdown of how policy structure, coverage limits, and add-ons come together to protect your property.
Home insurance policies follow a nationally recognized structure, with each “HO” form representing a different level of coverage. Below is a simplified snapshot of what each one includes:
| Policy Form | Coverage Type | Peril Coverage | Typical Use |
|---|---|---|---|
| HO-1 | Basic | Named perils | Rarely used today |
| HO-2 | Broad | Named perils | Budget coverage |
| HO-3 | Special | Open peril (structure), named peril (contents) | Most common nationwide |
| HO-5 | Comprehensive | Open peril for both structure and contents | Premium coverage |
| HO-A | Basic | Named perils | Common in older Texas homes |
| HO-B | Broad | Open peril for dwelling, named peril for contents | Traditional Texas favorite |
The main difference comes down to named peril versus open peril coverage.
Most Texas homeowners encounter HO-A, HO-B, HO-3, or HO-5. Each brings a different mix of coverage breadth, cost, and flexibility.
To see how these compare to more limited plans, our guide explaining the difference between HO-2 and HO-3 coverage levels walks through the shift from basic to more comprehensive protection.
Texas is one of the few states where HO-A and HO-B forms still play a significant role. These versions are often unique to the state and have been tailored around local regulations and carrier preferences.
The HO-A form provides coverage only for specific perils listed in the policy. Typical protections include:
It does not automatically cover water damage, foundation issues, or falling objects. Some insurers may offer optional endorsements for these, but many homeowners carry HO-A policies unaware of their limits until they need to file a claim.
Because coverage is so specific, these policies tend to be the least flexible. Still, for budget-minded homeowners, they can serve as a starting point—especially if paired with additional endorsements for wind or water damage.
The HO-B form became popular throughout Texas because it offered a stronger balance between cost and protection. It generally provides:
That means your home is protected against any risk not specifically excluded, such as accidental water discharge or falling trees, while your personal property still follows a named-peril list.
Typical exclusions for HO-B policies include:
Many carriers have gradually phased out HO-B policies in favor of HO-3 and HO-5 forms, but some Texas insurers still use modified versions that mirror the original structure. For homeowners who value affordability and straightforward protection, HO-B remains a reliable middle-ground option.
| Form Type | Best For | Coverage Style | Notes |
|---|---|---|---|
| HO-A | Older or lower-value homes | Named perils | Inexpensive but limited |
| HO-B | Mid-range homes | Open perils (dwelling), named perils (contents) | Balanced protection |
| HO-3 | Most standard homes | Hybrid (open + named) | Commonly used replacement for HO-B |
| HO-5 | New or high-value homes | Open perils (both) | Broadest coverage |
For example, a homeowner in a lower-risk inland area may still prefer HO-A to keep premiums manageable, while someone with a newer property might move toward HO-3 for better structural coverage.
HO-3 policies have become the default choice for many Texans because they provide a practical balance between price and protection. This form covers the structure of your home against all risks except those specifically excluded, while personal property receives named-peril coverage.
| Category | Coverage Scope |
|---|---|
| Dwelling | Open-peril coverage for nearly all causes of damage except excluded risks |
| Personal Property | Named perils such as fire, theft, or water discharge |
| Liability | Legal and medical expenses for injuries or damage to others |
| Loss of Use | Temporary living costs if your home becomes uninhabitable |
Common exclusions include flood damage, earth movement, and neglect or poor maintenance. In Texas, separate flood or windstorm policies may be needed, especially along the Gulf Coast or in designated storm zones.
Homeowners often customize their HO-3 with optional endorsements such as:
These add-ons fill in the gaps that standard policies leave behind. Our team often helps clients compare how each carrier defines these endorsements since limits and definitions vary widely.
If you’re comparing rates or policy upgrades, understanding what factors influence home insurance prices can reveal why two HO-3 quotes may differ even if they appear similar at first glance.
For many, the HO-3 form provides the right combination of coverage, value, and flexibility to handle the unpredictable nature of Texas weather.
While HO-3 has become the industry standard, HO-5 represents the next level—providing open-peril coverage for both the structure and personal property. That means your belongings receive the same comprehensive protection as your home itself.
Because HO-5 policies typically pay based on replacement value, homeowners benefit from receiving what it costs to rebuild or replace new items rather than a depreciated value. To see how that payout difference works in real-world claims, review our explanation of the difference between replacement cost and actual cash value.
HO-5 coverage, while more comprehensive, may not be available in every part of Texas. Some carriers limit these policies in coastal or high-risk regions where hurricane exposure drives claim frequency higher. In those cases, an enhanced HO-3 with added endorsements can provide nearly equivalent protection.
To make sense of how these policy forms differ, here’s a quick visual comparison. Each category shows how protection broadens as coverage levels increase.
| Feature | HO-A | HO-B | HO-3 | HO-5 |
|---|---|---|---|---|
| Dwelling Coverage | Named perils only | Open perils | Open perils | Open perils |
| Personal Property | Named perils | Named perils | Named perils | Open perils |
| Liability Protection | Included | Included | Included | Included |
| Loss of Use | Often limited | Included | Included | Included |
| Valuable Items (jewelry, electronics) | Low limits | Moderate limits | Moderate limits | Higher limits |
| Typical Exclusions | Water damage, foundation movement, wear & tear | Flood, earth movement, neglect | Flood, earth movement, neglect | Flood, earth movement, neglect |
| Ideal Home Type | Older or lower-value homes | Mid-range Texas homes | Most standard homes | Newer or high-value homes |
| Premium Range | Lowest | Moderate | Moderate-High | Highest |
The main difference lies in how personal belongings are covered. HO-3 still limits items like electronics or jewelry to named perils, while HO-5 protects them against virtually all sudden losses, including accidental damage.
Some homeowners in Texas choose to start with HO-3 coverage and then add endorsements for water backup or personal property replacement cost. Others prefer the peace of mind of an HO-5 plan, especially if the home’s contents hold high value.
Each household’s priorities differ—some value premium protection, while others focus on affordability or policy flexibility. Below is a simple decision guide that outlines key considerations.
| Home Profile | Best Fit | Reason |
|---|---|---|
| 25-year-old home in Lufkin, moderate value | HO-3 | Balanced coverage for age and risk |
| Newer build in Kingwood with custom finishes | HO-5 | High replacement value and valuable contents |
The form type should match the property’s rebuild cost, the homeowner’s tolerance for risk, and the region’s weather exposure.
Although HO-3 and HO-5 share a similar structure, the claims process can vary in key areas. Below is an overview highlighting what Texas homeowners often ask about.
| Claim Scenario | HO-3 Response | HO-5 Response |
|---|---|---|
| Accidental damage to the laptop | Not covered unless listed as a peril | Covered (open peril) |
| Water leak from the AC unit | Covered under dwelling; personal items affected must match the named perils | Covered under both dwelling and personal property |
| Stolen jewelry worth $5,000 | Covered up to set sub-limit unless scheduled separately | Higher limit; some carriers offer full replacement |
| Roof damage from a hailstorm | Covered if peril listed and damage confirmed as sudden | Covered under the open-peril clause unless excluded |
These distinctions matter most during real-world losses. Many policyholders assume all damage will be reimbursed, but each policy defines coverage differently. The HO-5 form reduces gray areas by expanding protection across both the structure and contents.
That confusion often shows up in homeowner discussions online. In one Reddit thread on r/Insurance, a user asked, “Is an HO-3 homeowners policy that much worse than an HO-5?” Responses were divided: some believed the difference was minimal, while others pointed out that HO-3 covers personal belongings only for named perils, unlike the open-peril protection under HO-5. Comments like these reveal how even well-informed homeowners debate the trade-off between broader coverage and higher premiums.
These conversations mirror what we hear from Texas clients every week—many are surprised to learn how much their policy form affects claim outcomes.
Every homeowner wants dependable coverage without overpaying. In Texas, where storms and property risks vary from one county to the next, policy selection benefits from a careful balance between affordability and protection level.
Here’s how to think about each tier:
Even among these forms, pricing fluctuates widely. Carrier appetite, construction type, and location all influence how premiums are calculated. For instance, homes near the Gulf Coast often require windstorm coverage through the Texas Windstorm Insurance Association (TWIA), while inland homes face fewer restrictions.
Recent federal data highlights just how quickly premiums are rising nationwide. According to a 2024 report from the U.S. Department of the Treasury, average homeowners insurance costs have increased 8.7 percent faster than the rate of inflation between 2018 and 2022. That gap continues to widen as rebuilding costs, weather-related claims, and reinsurance expenses climb across the country.
For Texas homeowners, that trend underscores the importance of matching coverage form to risk exposure rather than price alone. Policies like HO-3 and HO-5 may cost slightly more upfront but often provide stronger long-term value when major repairs or rebuilds are needed.
If rate stability matters, reviewing what affects pricing patterns across Texas may help.
Many homeowners find the terminology and policy comparisons overwhelming. HO-A, HO-B, HO-3, and HO-5 forms sound similar but deliver very different levels of protection. Independent agencies like Richey Insurance work with dozens of carriers, each with its own version of these forms, exclusions, and discounts.
Over the years, our team has seen many Texas homeowners come to us after experiencing claim surprises tied to their policy form. One family in Kingwood carried an older HO-A policy for years because it seemed affordable. After a severe hailstorm damaged their roof, they discovered the policy only paid a fraction of the repair cost due to named-peril limitations. When they later switched to an HO-3 form, their next claim received full replacement coverage—an upgrade that ultimately saved thousands.
Experiences like this are common across the state. Some homeowners learn about their exclusions during the worst possible moment: right after filing a claim. Sharing these stories helps others understand that a slightly higher premium can translate to far stronger protection when severe weather strikes.
When clients ask which policy is “best,” our advice usually starts with a question: What do you want your insurance to do for you? Some families prefer the lowest premium available, while others want coverage that handles every unexpected event. The right answer depends on your tolerance for risk and your home’s value.
Richey Insurance reviews carrier options side-by-side to identify the combination that best fits your home, budget, and location. Because we represent more than 100 insurance providers, we can match policies across multiple coverage tiers—from basic HO-A protection to comprehensive HO-5 plans.
Yes, but availability depends on your carrier and location. Some insurers still offer modified HO-B plans, while others have shifted exclusively to HO-3. HO-A remains limited mainly to older or lower-value homes.
In many cases, yes. Carriers may require a new home inspection or updated replacement-cost estimate. Some homeowners choose to keep HO-3 and expand it with endorsements instead of switching forms entirely.
Even under the same form type, pricing reflects different factors such as roof condition, construction materials, and location risk. Reviewing those elements with your agent helps clarify rate differences.
Policy declarations list the form number (e.g., HO-3, HO-B). If you’re unsure, contact your agent to review what coverage level you currently hold. Many homeowners discover they carry older forms that no longer match their property value or lifestyle.
Choosing between HO-A, HO-B, HO-3, and HO-5 policies shapes how confidently a homeowner can recover from loss. The right form protects your investment, maintains property value, and minimizes unpleasant surprises during a claim.
Each policy type serves a purpose, but not every form suits every home. Evaluating coverage limits, exclusions, and replacement value gives homeowners a clearer path to the right balance of price and protection.
At Richey Insurance, we specialize in matching Texans with the most appropriate coverage from trusted national and regional carriers. Our goal is to help you protect your home with a policy that truly fits—no hidden gaps, no overlooked exclusions, and no unnecessary expense.
