An HO-3 is one of six types of homeowner's insurance that protect personal property from specific types of damage, and it provides coverage for the home from all forms of damage unless otherwise stated in the policy, notes InvestorGuide.com. It meets coverage requirements set by lenders, explains Clarke & Sampson.
An HO-3 is the standard in insurance policies, reports Clarke & Sampson. An HO-3 policy does not cover personal property damages caused by fire, theft, vandalism, snow or volcanic eruptions. However, damage to the home for these reasons is part of the coverage.
HO-3 is one of six policies based on the Homeowners 2000 Program, reports ThisMatter.com. HO-3 provides full replacement for losses with no depreciation deduction. Of the six policies, homeowners purchase the HO-3 the most often.