1. Forms
  2. HO
  3. HO-00-03

What it does

The HO 3 covers the dwelling and other structures against direct physical loss unless excluded, and covers personal property against the named broad-form perils. Section II provides personal liability and medical payments to others for the named insured and resident family members, subject to exclusions for motor vehicles, watercraft, aircraft, "business" and professional services.

ISO's 2022 homeowners program (03 22 editions) is the multistate standard in roughly 40 jurisdictions; the 2011 program (05 11 editions) remains the ISO edition in AL, CA, CT, FL, GA, HI, LA, NC, TX and VI, and North Carolina moves to a 2022-based program on June 1, 2027. The 2022 revision addressed cannabis, e-bikes and e-scooters, drones and virtual currencies, raised several Coverage C special limits and added a home-sharing framework.

Who needs it

Owner-occupants of one- to four-family dwellings; typical underwriting rules limit the form to private residences with no more than two families and two roomers or boarders per family.

Commercial agents meet it on almost every business owner's household: it is the underlying policy a personal umbrella will require, and it is where a home-based business exposure is usually uninsured.

Key provisions and limits

  • "Business" includes any trade, profession or occupation, full or part time, and other paid activities; the 05 11 form excepts activities that produced no more than $2,000 for an insured in the prior 12 months, volunteer work and certain home day care.
  • Coverage B does not cover other structures from which a "business" is conducted or used to store business property (with a limited exception).
  • Coverage C special limits in the 05 11 edition include $2,500 on business property on the residence premises and $1,500 away from it.
  • Section II excludes bodily injury and property damage arising out of a "business" conducted from an insured location or engaged in by an insured, except occasional or partial rental of the residence and part-time self-employed activity of insureds under 21 with no employees.

Quoting and selling notes

  • Ask every homeowner client about home offices, client visits, inventory, short-term rentals, rental units and farming. Fixes range from HO 04 12 and HO 04 42 to HO 07 01, HO 24 70 and a businessowners or CGL policy.
  • Check that Coverage E meets the personal umbrella's required underlying limit.

Editions and availability

Editions in use and where they apply: 03 22 (41 jurisdictions); 05 11 (10 jurisdictions: AL, CA, CT, FL, GA, HI, LA, NC, TX, VI).

Section II changes affect umbrella placement. The ISO personal umbrella (DL 98 01) needs its own excess endorsements for business pursuits, home business, home day care and home-sharing exposures, so confirm the umbrella responds before relying on a homeowners endorsement for a business-type exposure.

Related forms

HO 00 02, HO 00 05, HO 00 23 (transition endorsement), HO 04 42, HO 07 01, HO 24 71, HO 24 70, HO 04 90, HO DS 01.