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Homeowners Forms HO-2 through HO-8 and Eligibility

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Alaska Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Alaska Property & Casualty Insurance Exam Overview

Alaska Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

Homeowners Forms HO-2 through HO-8 and Eligibility Section I Coverages A-D and Additional Coverages Section I Perils Insured Against and Exclusions Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

Section II Coverages E (Liability) and F (Medical Payments) Homeowners Conditions and Duties After Loss Common Homeowners Endorsements

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D Coverage for Damage to Your Auto 7.2 Exclusions and Part E Duties After an Accident 7.3 Part F General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Alaska P&C Insurance Regulation & Licensing

1.1 Alaska Division of Insurance 1.2 Alaska P&C Producer Licensing Requirements 1.3 Alaska Producer Duties and Responsibilities

22 Chapter 2: Alaska Property Insurance

2.1 Alaska Homeowners Insurance 2.2 Alaska Property Insurance Policy Provisions

23 Chapter 3: Alaska Auto & Casualty Insurance

3.1 Alaska Auto Insurance Requirements 3.2 Alaska Commercial Liability Insurance

24 Chapter 4: Alaska Ethics & Professional Conduct

4.1 Alaska Ethical Standards for Insurance Producers 4.2 Alaska Privacy Laws and Regulatory Compliance

Homeowners Forms HO-2 through HO-8 and Eligibility

Key Takeaways Explain This Topic AI

Homeowners forms are package policies combining Section I (property, Coverages A-D) and Section II (liability, Coverages E-F) under one premium and expiration date

HO-2/HO-3/HO-5/HO-8 require owner-occupancy of a 1-4 family dwelling; HO-4 is for tenants and HO-6 is for condo unit owners

HO-3 covers roughly 79% of owner-occupied homes and gives open-peril dwelling coverage with named-peril contents

HO-5 differs from HO-3 only by extending open-peril coverage to personal property as well as the structure

HO-8 settles older-home losses on a functional/ACV basis to avoid over-insurance when replacement cost far exceeds market value

Last updated: June 2026

The Homeowners Program

The ISO Homeowners (HO) program is a series of standardized package policies that combine Section I (property) and Section II (liability) into one contract with a single premium and a single expiration date. Most state exams test the current HO 2011 (and HO 2022 refresh) editions , but the form numbers and their behavior have been stable for decades, which is why examiners can write questions that work in every jurisdiction.

A package approach is deliberate. Bundling property and liability into one contract reduces gaps, eliminates the chance of conflicting policy periods, and gives the insurer a single underwriting view of the household. It also lets the program attach shared conditions (such as duties after loss, appraisal, and subrogation) that apply across both sections.

Every homeowners form shares the same skeleton: Section I covers four property exposures (Coverages A-D) and Section II covers two liability exposures (Coverages E-F). What changes from form to form is which perils are covered and, for two outliers (HO-4 and HO-6), who is eligible . Knowing the skeleton lets you reason about any form even if you cannot recall its exact peril list.

The Six Working Forms

Memorize these by name, number, and the single distinguishing trait. The peril-trigger differences are detailed in Section 4.3; here, focus on identity and eligibility.

  • Form ISO Name Eligible Insured Coverage Trigger
  • HO-2 Broad Form Owner-occupant, 1-4 family dwelling Named perils (16) on dwelling AND contents

HO-3 Special Form Owner-occupant, 1-4 family dwelling Open peril on dwelling/structures; named peril on contents

  • HO-4 Contents Broad Form Tenant (renter) Named perils on personal property only
  • HO-5 Comprehensive Form Owner-occupant, premier risks Open peril on BOTH dwelling AND contents
  • HO-6 Unit-Owners Form Condominium unit owner Named perils on contents + Coverage A (improvements)
  • HO-8 Modified Coverage Form Owner of older/historic homes Named perils (limited list); ACV loss settlement

The HO-1 (Basic Form, 11 named perils) has been withdrawn in most states and is rarely tested today; if it appears, treat it as the narrowest owner-occupant form.

When a question describes an insured and asks for the correct form, work the decision in order: first identify the insurable interest (owner, tenant, or condo unit owner), then match the requested breadth of coverage. A tenant can never be steered to an owner-occupant form, and a condo owner needs HO-6 even though they hold title, because the association's master policy covers the building shell while the unit owner insures interior improvements and contents.

Eligibility Rules That Generate Exam Questions

Owner-occupancy of a 1-4 family dwelling is required for HO-2, HO-3, HO-5, and HO-8. The dwelling must be the named insured's residence. Five or more units, or a non-owner-occupied rental, must be written on a Dwelling Property (DP) policy instead.

An incidental business or office in the home (no more than two boarders/roomers per family) does not destroy eligibility.

A dwelling under construction is eligible if the insured intends to occupy it.

HO-4 is the only form for tenants; HO-6 is the only form for condo unit owners. Writing a renter on an HO-3 is a classic trap — there is no Coverage A dwelling to insure.

HO-8 exists because older homes often have a replacement cost far above market value. It settles losses on a functional/ACV basis and limits theft and other perils to keep the policy affordable and to discourage over-insurance fraud.

Why HO-3 Dominates

NAIC market data shows the HO-3 Special Form covers roughly 79% of owner-occupied homes in the United States. It is the default recommendation because it gives open-peril (all-risk) protection on the structure while keeping contents on a named-peril basis, balancing breadth and cost.

The HO-5 upgrades contents to open peril and is marketed to higher-value, well-maintained homes. The difference between HO-3 and HO-5 is personal property coverage breadth , not structure coverage. Examiners love this distinction: both forms give open-peril dwelling coverage, but only HO-5 extends open peril to contents.

A related trap concerns the HO-2 . Some candidates assume HO-2 is obsolete, but it remains a budget option that covers both the dwelling and contents on a named-peril basis. The practical difference from HO-3 is on the structure: under HO-2 a roof-collapse from an unlisted cause may be denied, while under HO-3 the same loss is covered unless an exclusion applies. Recommending HO-2 over HO-3 to save premium therefore trades away meaningful structural protection, and an agent should document that the client understood the narrower coverage.

The Homeowners Forms at a Glance

The ISO Homeowners program packages property (Section I) and liability (Section II) into standardized forms. The exam expects the distinguishing feature of each:

  • Form Dwelling (Cov A) Personal property (Cov C) Use
  • HO-2 (Broad) Named peril Named peril Owner-occupant, broad perils
  • HO-3 (Special) Open peril Named peril The most common owner form
  • HO-4 (Contents Broad) None Named peril Renters/tenants
  • HO-5 (Comprehensive) Open peril Open peril Highest-end owner form
  • HO-6 (Unit-Owners) Limited (improvements) Named peril Condominium owners
  • HO-8 (Modified) Named peril, ACV/repair-cost Named peril Older homes where RC > market value

Trap: HO-4 is renters and HO-6 is condo — both insure contents and liability but little or no structure.

Eligibility and the Owner-Occupancy Requirement

Homeowners forms require the dwelling to be owner-occupied (HO-2/3/5/8) — for one- to four-family residences where the named insured lives. Tenants use HO-4 , condo unit owners use HO-6 . A dwelling held purely for rental income belongs on a Dwelling (DP) policy, not a Homeowners form.

The HO-8 exists specifically for older homes whose replacement cost far exceeds market value (ornate construction no longer economical to duplicate). It settles losses on a modified (functional/repair-cost or ACV) basis to avoid over-insuring relative to value. Worked example: a 1910 brownstone with a $200,000 market value but $600,000 replacement cost is best written on an HO-8 , which settles on a repair-cost basis, sidestepping coinsurance problems an HO-3 would create. Trap: the HO-8 is not 'cheaper coverage' — it is a valuation solution for old homes.