Home Insurance Information: HO-3 Coverages, Endorsements, and Claims

Nearly every owner-occupied home in the U.S. is insured on an HO-3 form. It’s an “open peril” policy for the dwelling (everything is covered except what’s specifically excluded) and a “named peril” policy for personal property (only listed perils are covered). This guide walks through what HO-3 actually covers, the standard exclusions, the endorsements worth adding, and how deductibles work.

What HO-3 covers

• Coverage A — Dwelling: structure of your home, attached garage, built-in appliances.
• Coverage B — Other structures: detached garage, shed, fence, pool, driveway.
• Coverage C — Personal property: your belongings (10 named perils).
• Coverage D — Loss of use: hotel, food, incremental living costs while displaced.
• Coverage E — Personal liability: bodily injury + property damage you cause to others.
• Coverage F — Medical payments: small medical bills for guest injuries (no fault required).

Standard HO-3 exclusions to know about

• Flood — separate policy (NFIP or private). Always required for FEMA-designated SFHA zones.
• Earthquake — separate endorsement or standalone. Critical in CA, OR, WA, AK, parts of UT/NV/MO/SC.
• Maintenance / wear and tear — ongoing neglect isn’t covered.
• Sewer / drain backup — available as an endorsement; rarely standard.
• Pest damage — termites, rodents, etc.
• Intentional acts — damage you cause on purpose.
• Government action — ordinance + law expansion required separately.

Deductibles: flat vs. percentage

Most home policies have a flat dollar deductible — $1,000, $2,500, $5,000. In CAT-prone areas you’ll also see percentage deductibles for specific perils:

• Wind/hail deductible — common in TX, OK, KS, NE; usually 1–5% of dwelling.
• Hurricane deductible — FL, LA, TX coast, NC, SC, GA; usually 2–10% of dwelling.
• Wildfire deductible — emerging in CA; 1–10% of dwelling.
• Named-storm deductible — separate trigger for named tropical storms.

On a $500K home, a 5% hurricane deductible is $25,000 out of pocket before the carrier pays a dollar. Worth knowing before a storm season.

What to do at claim time

1. Immediate — stop further damage (tarp the roof, shut off the water main).
2. Day 1 — file claim via app or 1-800; get claim number.
3. Days 2–5 — adjuster visits, scope of loss documented, emergency mitigation paid.
4. Weeks 1–4 — contractor estimates, repair authorization, ALE (loss-of-use) reimbursement.
5. Months 1–6+ — repairs/rebuild, final payout once work complete (replacement-cost holdback).