Updated: April 29, 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.
"Named perils" means only the risks written into the policy trigger a payout. If the cause of loss isn't on the list, the claim is denied. This differs from HO-3's open-peril structure, which covers the dwelling against all risks except those explicitly excluded.
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 is listed is covered. Understanding the different types of homeowners insurance can help you see 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. HO-1 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.
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.
HO-1 doesn't cover personal liability, medical payments to others or any open-peril risks. HO-1 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.
HO-1 does not cover flood or earthquake damage under any standard policy. HO-1 does cover windstorms, hail and lightning strikes, but flood damage requires a separate policy through the NFIP or a private insurer, and earthquake coverage requires a standalone policy or endorsement.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.
He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.
His insights on products ranging from car, home and renters insurance to health and life insurance have been featured in The Washington Post, The New York Times and NPR, among others.
Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to the analysis of the personal insurance market. He's also a five-time Jeopardy champion!
