The short answer: both HO3 and HO5 cover your house itself against anything not specifically excluded, but they treat your belongings differently. An HO3 covers contents only for a named list of perils, often at depreciated value. An HO5 covers contents for anything not excluded, usually at full replacement cost. The HO5 is the stronger policy; it simply costs more and is pickier about which homes qualify.
Here is the difference in practice, and how to decide which one belongs on your South Carolina home.
What do HO3 and HO5 cover the same?
The dwelling. On both forms, the structure of your home is covered on an open perils basis: if the cause of loss is not excluded, it is covered. Wind, hail, fire, lightning, fallen trees, the things that actually happen to homes in South Carolina, are covered on both. So are the standard exclusions: flood, earthquake, wear and tear, and neglect are outside both forms. Liability and additional living expense work the same way on both too.
If someone tries to sell you an HO5 as “hurricane-proof,” walk away slowly. The difference is not about the storm; it is about your stuff.
How does an HO3 treat your belongings?
On an HO3, personal property is covered on a named perils basis. Fire, theft, windstorm, and roughly a dozen other listed causes are in; anything not on the list is out, and when you file a contents claim, it is on you to tie the damage to a listed peril. Standard HO3 forms also settle contents at actual cash value unless you have added a replacement cost endorsement, meaning depreciation comes out of your check. The couch you paid 2,000 dollars for eight years ago is not a 2,000 dollar couch to the adjuster.
How does an HO5 treat your belongings?
The HO5 extends open perils to your contents. Instead of you proving the damage came from a listed cause, the carrier has to point to an exclusion to deny it. Odd, hard-to-categorize losses, paint spilled through the ceiling, a mystery leak ruining a closet of clothes, tend to land in your favor. HO5 forms also typically settle contents at replacement cost by default and often carry higher built-in limits for special categories. More coverage, fewer arguments, one predictable trade: premium.
Which one should you buy?
Three questions settle most cases:
- Would replacing your stuff hurt? A furnished family home with electronics, tools, and a full closet has real contents exposure. The more you own, the more the HO5’s replacement cost and burden-of-proof advantages matter.
- Does your home qualify? Carriers typically offer HO5 on newer or well-kept homes with clean claim histories. Some homes simply will not be offered the form, and that decision varies carrier to carrier.
- What does the gap cost? The difference is often modest, and sometimes an HO3 with a replacement cost contents endorsement gets you most of the way for less. This is exactly the comparison an independent agent runs across carriers; Griffin Insurance does it daily for homes from Sumter to the coast, across 40 plus carriers.
One South Carolina note either way: your wind or named-storm deductible does more to shape a hurricane claim than the form letter does. Whichever form you land on, know that number before storm season; our guide to roof replacement claims shows how those deductibles play out. And flood always needs its own separate policy, as neither form touches rising water.
Frequently asked questions
Is HO5 worth it? Usually, when available: better claim position on contents and replacement cost settlement for a modest bump in premium.
Can any home get an HO5? No. Newer, well-maintained homes with clean histories qualify; others can approximate it with endorsements on an HO3.
Does HO5 cover flood or earthquake? No. Both are excluded on both forms; flood is always a separate policy.
How do I know which I have? The form number is on your declarations page, or call or text 803-848-0089 and we will read your policy with you, no charge.