What Is an HO-1 Insurance Policy?

An HO-1 homeowners policy operates on a named-peril basis: it only pays if damage to your home's structure is caused by one of the specific perils listed in the contract. If the cause of your loss isn't on that list, your claim will be denied, regardless of how serious the damage is.

Most homeowners policies work differently. 

An HO-3, which is what most homeowners carry, uses open-peril coverage for the dwelling. Open-peril (also called all-risk) means the policy covers any cause of loss that isn't specifically excluded. Named-peril coverage puts the burden on you to match each loss to a listed cause, rather than on the insurer to prove an exclusion applies.

An HO-1 policy covers the dwelling itself against these 10 specific causes of loss and nothing outside this list:

🔥 Fire or smoke

🚨 Theft or malicious mischief

💥 Explosions

🖌️ Vandalism

⚡ Lightning

🚗 Damage from vehicles

⛈️ Hail and windstorms

✈️ Damage from aircraft

📢 Riots and civil commotion

🌋 Volcanic eruption

A falling tree branch, a burst pipe, an ice dam or a backed-up drain: none of those make the list, so none would result in a payout. If the cause of your loss isn't among the 10, the insurer owes you nothing.

HO-1 policies don't cover three things: your personal property, your liability and your additional living expenses. These are covered by HO-3 insurance.

HO-1 policies are uncommon. Most insurers don't present them as a first option, and most homeowners who qualify for broader coverage are directed toward an HO-3 instead.

In practice, an HO-1 shows up in two situations. An insurer may require it for older homes or properties with a heavy claims history, where the carrier will cover catastrophic loss but not a broader range of risks. 

Separately, homeowners who own their properties outright and aren't subject to a lender's coverage requirements sometimes choose HO-1 as the lowest-cost option available.

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.

For most homeowners who qualify for an HO-3, the additional cost over an HO-1 is modest relative to what the upgrade adds in protection.

HO-1 home insurance protects only your home's structure against 10 named perils, leaving out personal belongings, liability coverage and temporary housing costs. It's one of the least-used homeowners policy types because most homeowners either need more coverage than it provides or have lenders requiring a broader policy. For homeowners with no lender requirements who need low-cost protection for a higher-risk property, it fills a narrow but real purpose. Anyone who qualifies for an HO-3 should compare the best homeowners insurance policies for them before deciding.