home comparison
HO-3 vs. HO-5 Homeowners
HO-3 is the standard homeowner policy. HO-5 adds open-perils coverage on personal property and replacement cost defaults. For middle and upper-income homeowners, HO-5 is usually worth the 10–15% upcharge.
HO-3 Standard
80/100
$1,200–$2,400/yr
Best for: Most homeowners under $500k home value
Pros
- Lower cost
- Named perils on contents
- Widely available
Cons
- ACV on contents by default
- Some claim disputes over peril type
HO-5 Comprehensive
88/100
$1,400–$3,000/yr
Best for: Homes $500k+, high-value contents
Pros
- Open perils on contents
- Replacement cost default
- Fewer claim disputes
Cons
- 10–15% pricier
- Not offered by every carrier
Our recommendation
If your contents exceed $50k or your home is worth $500k+, HO-5 typically pays back in a single claim.
Frequently asked
What's the difference between ACV and replacement cost?
ACV (actual cash value) deducts depreciation. Replacement cost pays today's price to replace the item with new equivalent.