Difference Between HO3, HO5, and HO6 Policies: A North Carolina Home Insurance Guide

Choosing the Right Homeowners Policy Starts With Knowing the Basics

Not all homeowners insurance policies are built the same—and the right one for you depends on your property type, coverage needs, and budget.

In North Carolina, the three most common policy types are HO3, HO5, and HO6. While they all protect your home and belongings, each offers a different level of coverage and is designed for a specific kind of homeowner.

Whether you own a single-family home in Charlotte, a custom-built property in Wilmington, or a condo in Raleigh, understanding the differences can help you make a confident choice.
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HO3 – The Standard Homeowners Policy

An HO3 policy is the most common type of homeowners insurance in the U.S. and covers:

• Dwelling (open-peril) – Your home’s structure is covered for all risks unless excluded.
• Personal property (named-peril) – Your belongings are covered only for specific risks like fire, theft, or wind.
• Liability – Protects you if you’re responsible for injury or property damage to others.
• Loss of use – Helps pay for temporary housing if your home becomes uninhabitable.

Best for: Most single-family homeowners looking for a balance of affordable premiums and solid protection.

North Carolina tip: An HO3 works well for standard homes across the state, but you may need to add flood insurance or endorsements for full protection.
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HO5 – The Premium Upgrade

An HO5 policy builds on the HO3 and provides broader protection:

• Dwelling (open-peril) – Same as HO3, covers your home unless excluded.
• Personal property (open-peril) – Your belongings are covered for all risks unless excluded, often with higher replacement cost limits.
• Fewer exclusions – More claims are covered without dispute.

Best for: Homeowners with high-value homes or belongings, or those who want top-tier coverage with fewer gaps.

North Carolina tip: An HO5 can be especially valuable for luxury homes in coastal areas or custom builds in high-value markets like Charlotte or Cary.

HO6 – Condo Owners Insurance

An HO6 policy is designed for condo owners and works alongside your HOA’s master policy:

• Interior structure coverage – Walls, flooring, cabinets, fixtures.
• Personal property coverage – Belongings inside your unit.
• Liability – Protection for injury or property damage you cause.
• Loss of use – Covers temporary housing if your condo becomes uninhabitable.

Best for: Condo owners in cities like Wilmington, Raleigh, and Greensboro who need protection for the inside of their unit and personal property.

North Carolina tip: HOAs often only cover the exterior and common areas, so an HO6 fills the gap for the inside of your unit.

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How to Choose the Right Policy

1. Know your property type – Condo, single-family, or luxury home?
2. Decide your risk tolerance – Do you want standard or broader coverage?
3. Consider your valuables – High-value belongings may need HO5-level protection.
4. Check local risks – Coastal, urban, and rural homes face different exposures.
   
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Why North Carolina Homeowners Choose Sizemore Insurance

At Sizemore Insurance, we:

• Compare HO3, HO5, and HO6 policies from top carriers.
• Customize coverage to your property and location.
• Explain the fine print so you know exactly what’s covered.
• Shop multiple carriers to find the right fit at the right price.
• Provide local expertise—we know the risks unique to North Carolina homes.

Get the Right Homeowners Policy for You

Whether you need an HO3, HO5, or HO6, we’ll help you find the best coverage for your home and lifestyle.

Start your quote online in minutes or call (910) 791-1011 to speak with a Sizemore Insurance advisor.

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