You're comparing two home quotes. One says "HO-3." The other says "HO-B." A third has a product name that doesn't look like either. They're all called homeowners insurance, so are they the same policy?
Not quite, and Texas adds its own twist. For the whole policy, start with our complete Texas home insurance guide.
What's the difference between an HO-3 and an HO-5?
The short answer: Both generally cover your house on an open perils basis, but an HO-3 usually covers your belongings only for the named perils it lists, while an HO-5 covers your belongings on an open perils basis too.
The National Association of Insurance Commissioners (NAIC) uses these definitions in its 2025 homeowners data call definitions:
- HO-3, the "Special Form," covers all perils except those explicitly excluded, such as floods or earthquakes.
- HO-5, the "Comprehensive Form," provides open perils coverage for both the dwelling and personal property.
So the house is treated about the same on both. The real difference is your stuff: furniture, clothes, electronics.
Why does Texas also use HO-A, HO-B and HO-C?
The short answer: HO-A, HO-B and HO-C are Texas's standardized (promulgated) form names, and since 2003 insurers can also file their own forms, so a Texas policy may carry a Texas name, a national name or the insurer's own product name.
TDI's Texas homeowners policies report (April 12, 2018) lays out the history. Companies must write Texas homeowners insurance on forms TDI approves. Before 2003, they had to use Texas promulgated forms or Insurance Services Office (ISO) forms. Since 2003, under Senate Bill 14, insurers can file and use their own forms, though some still use the promulgated ones.
The report says the forms "can be generally categorized into four types," and its table pairs each Texas policy form with an ISO policy form:
- HO-A lines up with ISO's HO-1: basic named perils.
- HO-A+ lines up with HO-2: broader named perils.
- HO-B lines up with HO-3: all risk on the building, named perils on contents.
- HO-C lines up with HO-5: all risk on the building and contents, the broadest of the four.
Today, Insurance Code section 2301.006 says an insurer files a form at least 60 days before using it, and TDI's residential property filing checklist (updated March 11, 2026) asks for a side-by-side comparison with the forms it's compared to. So two policies with the same nickname can still read differently.
How do named perils and open perils change what's covered?
The short answer: A named perils policy pays only for causes it lists, while an open perils policy pays for any cause it doesn't exclude, which shifts the burden of the fine print.
TDI's page on all-risk and named peril policies (updated September 29, 2025) explains it simply. All-risk policies, also called open perils, cover any event the policy doesn't specifically exclude. Named perils policies cover only the events listed, and TDI says they're cheaper but may not cover everything you need.
| Form | Your house | Your belongings |
|---|---|---|
| HO-A (Texas) / HO-1 | Named perils, basic | Named perils, basic |
| HO-A+ (Texas) / HO-2 | Named perils, broader list | Named perils, broader list |
| HO-B (Texas) / HO-3 | Open perils (all risk) | Named perils |
| HO-C (Texas) / HO-5 | Open perils (all risk) | Open perils (all risk) |
| HO-4 (renters) | Not covered; that's the landlord's building | Broad named perils |
| HO-6 (condo) | Your ownership interest in the unit | Covered |
Sources: TDI's 2018 report for the four Texas forms and the NAIC's 2025 definitions for HO-4 and HO-6. Renting or own a condo? See our renters insurance and condo insurance pages.
Does an HO-3 pay replacement cost or actual cash value on belongings?
The short answer: It depends on the policy, not the form number, so check whether your personal property is settled at replacement cost or actual cash value, because that can matter as much as HO-3 versus HO-5.
TDI's homeowners insurance guide (updated June 1, 2026) says home policies provide either replacement cost coverage or actual cash value coverage. Replacement cost pays to repair or replace your house and belongings at current prices. Actual cash value pays replacement cost minus depreciation. TDI's advice: "To be fully protected, make sure your policy has replacement cost coverage."
A TDI consumer page last updated in April 2007 (preserved by the UNT web archive) said the standardized HO-B paid replacement cost on the house but only actual cash value on household goods, with replacement cost on contents available for an extra premium. That described the 2007 standard form; today's forms vary, so check yours.
TDI also says that with replacement cost coverage, most companies pay with two checks, and you usually must complete repairs within a certain period to get the second one.
Your roof can have its own settlement terms; see our roof and actual cash value guide.
How can you tell which form you have from your declarations page?
The short answer: Look on your declarations page for the policy form's name, the list of attached endorsements and the loss settlement for personal property, and ask for the full policy if any of it isn't spelled out.
TDI says the first page of your policy is the declarations page, a summary of your coverages, dollar limits and deductibles. Texas law adds a rule: Insurance Code section 2301.056 (Senate Bill 112, effective September 1, 2013, for policies issued or renewed from January 1, 2014) says a residential property declarations page must state the exact dollar amount of each deductible. The list of deductible types may appear on a separate page. This is general information, not legal advice; your policy wording controls.
Here's how we read one with a client:
- Find the form name. Look for "HO-B," "HO-3," "HO-5," "Special Form," "Comprehensive Form" or the insurer's own product name, often near a form number.
- Scan the endorsements list. Add-ons can change how belongings are covered or settled. TDI says most companies offer endorsements that increase or add coverage.
- Check personal property settlement. Look for "replacement cost" or "actual cash value" next to personal property, or a replacement cost endorsement.
- Write down each deductible in dollars. Section 2301.056 means the dollar amounts should be on the page. Our wind and hail deductible guide explains percentage deductibles.
- Still unclear? Ask for the full policy. The "Perils Insured Against" section tells you whether your belongings are covered for named perils or open perils.
What stays the same whether you have an HO-3 or an HO-5?
The short answer: The big exclusions, such as flood, earthquake, wear and tear and often coastal wind, are usually excluded on both forms, and both usually carry special dollar limits on things like jewelry.
TDI says even all-risk policies usually don't cover termites, wear and tear, sewer backups, floods or earthquakes, and usually don't pay to remove mold or repair the foundation. An HO-5 generally doesn't change that. It's still an open perils policy with exclusions.
- Flood is separate. TDI says most home policies don't cover floods. Our Texas flood insurance guide covers NFIP and private flood options.
- Coastal wind may be separate. TDI says that on the coast your home policy might not cover wind damage. Galveston County is one of the 14 first-tier coastal counties TWIA serves (see our Galveston page). Our windstorm guide explains TWIA and private wind.
- Valuables have limits. TDI says home policies limit what they'll pay for things like jewelry and art, and suggests talking to your agent about adding coverage.
Our guide to what your Texas homeowners policy doesn't cover walks through each gap.
When is an HO-5 worth asking about?
The short answer: Ask about an HO-5 when your belongings are worth a lot to replace and you want them covered for anything not excluded, but first make sure your contents already settle at replacement cost.
An HO-5 style policy makes the most sense when:
- Your belongings would be expensive to replace, so an unlisted cause of loss could cost you a lot.
- You've already fixed the basics. Dwelling coverage at rebuild cost and replacement cost on belongings usually come first.
Expect it to cost more. TDI says named perils policies are cheaper, and its 2007 page called HO-C policies the most extensive coverage but more expensive than other types. Not every insurer offers one for every home, either; TDI notes each company's underwriting rules are different.
TDI says that if you owe money on your house, your lender will probably require an all-risk policy. HO-3 and HO-5 style forms both generally cover the house on an all-risk basis, so the choice between them is usually about your belongings, but your loan documents set the actual requirement.
How do you compare HO-3 and HO-5 quotes in Texas?
The short answer: Line the quotes up at the same limits and deductibles, then compare the perils basis and settlement for house, belongings and roof, using TDI's worksheet as your checklist.
TDI's policy comparison worksheet asks whether each policy is named peril or all risk, and whether it pays replacement cost or actual cash value for the dwelling, personal property and roof. TDI's shopping guide defines both terms and suggests getting price quotes through HelpInsure.com.
The state's Office of Public Insurance Counsel (OPIC) says on its Policy Comparison Tool page (modified August 24, 2026) that the tool is being redesigned with no set release date. In the meantime, OPIC points consumers to HelpInsure and to TDI-approved policy forms in SERFF.
Our coverage-first guide to comparing Texas home quotes walks through the full process.
We're an independent agency. Our public carrier lineup is Geico, Progressive, Liberty Mutual and Safeco, plus TWIA or private wind and NFIP or private flood. We re-confirm which carriers can write your policy before every quote, and we're not appointed with every carrier in Texas. When we re-shop coverage, clients save on average about $500 a year, though results vary. Start on our quote page or read about home insurance.
The bottom line
HO-3 and HO-5 style policies generally both cover your house for anything not excluded, though exclusions and wording vary by insurer. The main difference is your belongings: named perils on most HO-3 style policies, open perils on an HO-5. In Texas, add the HO-A, HO-B and HO-C nicknames and insurers' own filed forms, and the label tells you less than the wording. Pull your declarations page, check the form, the endorsements and how your belongings are settled, and we'll help you read the rest.
Last reviewed by the Watson Insurance team on November 11, 2026. Form definitions are from TDI's April 12, 2018 Texas homeowners policies report and the NAIC's 2025 data call definitions; statute references are to Texas Insurance Code chapter 2301, read on the official Texas statutes site. Educational only, not personalized insurance advice.
