Updated: June 26, 2026
Advertising & Editorial Disclosure
An HO-1 policy is a named-perils-only homeowners insurance policy that covers 10 specific risks and excludes liability, medical payments and open-peril protection.
HO-1 covers only 10 perils compared to HO-3's open-peril structure for the dwelling, and most insurers no longer sell HO-1 policies today.
Homeowners who want broader coverage should compare HO-2 or HO-3 policies. HO-3 is the industry standard and accepted by virtually all mortgage lenders.
An HO-1 policy is a basic homeowners insurance policy with the most limited coverage of any standard policy form. HO-1 covers named perils only, meaning 10 specific risks listed in the policy, and does not cover anything outside that list.
HO-1 is uncommon today: most insurers no longer offer it, and most lenders won't accept it as sufficient coverage for a mortgaged property.
A named-perils policy only pays out for losses caused by risks the policy names. Unlisted causes get denied at the claim stage, full stop. HO-3 works the opposite way: the dwelling gets open-peril coverage, meaning all risks apply unless the policy explicitly carves them out.
Covers damage caused by fire incidents and resulting smoke damage to the dwelling and personal property.
Covers loss of personal property due to burglary or theft from the home.
Covers intentional property damage caused by others to your home's structure or belongings.
Covers weather-related damage from strong winds or hail to the dwelling and attached structures.
Covers additional named risks including lightning strikes, volcanic eruption, damage from aircraft or vehicles and riots.
An HO-1 policy doesn't cover flood damage, earthquakes, personal liability, medical payments to others or any risk not explicitly listed in the policy.
Flood damage is not included under any HO-1 policy. Homeowners in flood-prone areas need a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer.
Earthquake damage is excluded from HO-1 coverage. Homeowners in seismically active states need a standalone earthquake policy or endorsement.
HO-1 provides no coverage for third-party bodily injury or property damage claims, lawsuits or legal defense costs.
No coverage for medical bills if a guest is injured on your property. HO-3 and HO-5 policies include this coverage.
Any peril not explicitly named in the policy is excluded. Water backup, mold, pest damage and gradual wear are all outside HO-1's scope.
Under a named-peril policy like HO-1, the burden of proof falls on the homeowner: you must show that the cause of loss matches a peril listed in the policy. If the cause matches, the insurer pays. If it does not, the claim is denied.
A fire breaks out in the kitchen and causes $15,000 in damage. The homeowner files a claim, the insurer confirms fire is a named peril and issues a payment of $14,000 after a $1,000 deductible.
A pipe corrodes slowly over several months and causes water damage to the subfloor. The insurer denies the claim because gradual water damage is not a named peril under HO-1. Only sudden, listed events qualify for coverage.
This contrast shows the core limitation of HO-1: only what's listed is covered. The types of homeowners insurance page shows how other policy forms handle these situations differently.
Most homeowners end up with an HO-3 policy because it is the industry standard, but knowing where HO-1 falls on the spectrum clarifies what you would be giving up with a bare-minimum policy. Homeowners often compare HO-3 vs. HO-5 to understand how coverage expands at the broader end of the spectrum.
HO-1 | Named Perils | Very limited |
HO-2 | Broad Form | More perils listed |
HO-3 | Open Peril (structure) / Named Perils (contents) | Most standard |
HO-5 | Open Peril (structure and contents) | Very broad |
HO-1 covers only 10 named perils with no liability, no medical payments and no open-peril protection. Most insurers do not sell HO-1 today, and most lenders will not accept it as sufficient coverage for a mortgaged property. Compare the best homeowners insurance options and get rates from multiple insurers to find standard HO-3 coverage at a competitive rate.
These frequently asked questions cover what an HO-1 policy includes, how it compares to an HO-3 and why most insurers no longer offer it.
HO-1 policies cover 10 named perils only: fire and smoke, theft, vandalism, windstorms and hail, explosions, lightning strikes, volcanic eruption, damage from aircraft or vehicles, riots and civil commotion. Nothing outside that list triggers a payout.
Most insurers no longer sell HO-1 policies. Coverage may still appear in certain state residual market programs or in older policies that haven't been updated. To check availability, contact your insurer directly or reach out to your state insurance department.
The two policies differ in scope. HO-1 covers only 10 named perils with no liability protection. HO-3 covers the dwelling on an open-peril basis, contents on a named-peril basis, plus liability and medical payments to others. HO-3 is accepted by virtually all mortgage lenders, while HO-1 is not.
The designation comes down to what's missing. Personal liability, medical payments to others and any open-peril risks aren't covered. HO-1 also covers fewer perils than HO-2 or HO-3, excludes flood and earthquake damage entirely and provides no protection for unlisted risks like water backup or mold.
Flood and earthquake damage aren't covered under any standard HO-1 policy. Windstorms, hail and lightning strikes are included, but flood damage requires a separate policy through the NFIP or a private insurer, and earthquake coverage requires a standalone policy or endorsement.
Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident expert in insurance and economics. He has spent nearly a decade covering the market, first at LendingTree and now at MoneyGeek, where he analyzes hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College before earning a master's in economics and international relations from Johns Hopkins University. Before MoneyGeek, he worked in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.
