Definition:HO-1
🏡 HO-1 is the most basic homeowners insurance form in the ISO standardized policy series, providing named perils coverage for both the dwelling and personal property. Often referred to as a "basic form," the HO-1 covers a limited list of specifically enumerated perils — traditionally including fire, lightning, windstorm, hail, explosion, riot, aircraft and vehicle damage, smoke, vandalism, theft, and volcanic eruption. Because of its narrow scope compared to broader forms like the HO-3 or HO-5, the HO-1 has become uncommon in the modern U.S. personal lines market, with many carriers no longer offering it.
🔍 Under the HO-1 form, the policyholder can only recover for a loss if the damage was caused by one of the perils explicitly listed in the policy. If a cause of loss falls outside that enumerated list — such as water damage from a burst pipe in versions of the form that exclude it, or weight of ice and snow — the claim is not covered. This stands in contrast to open perils forms, where coverage applies to any cause of loss not specifically excluded. The HO-1 still includes the standard HO policy structure with Coverage A through Coverage F sections, providing dwelling, other structures, personal property, loss of use, personal liability, and medical payments protections. However, the limited perils list on both the dwelling and contents sides means the policyholder bears significantly more residual risk than under broader forms.
📉 The HO-1's decline in market relevance reflects a broader industry trend toward offering — and regulators expecting — more comprehensive baseline protection for homeowners. Many state regulators and consumer advocacy groups view the HO-1 as insufficient for today's risk environment, particularly given evolving exposures such as water damage and severe convective storms. Most agents and brokers steer clients toward the HO-3 at minimum, and some states have effectively discontinued the HO-1 through regulatory action or market withdrawal. Still, the form retains educational significance: understanding HO-1 helps insurance professionals and insurtech product designers appreciate the spectrum of coverage breadth across the HO series and the foundational distinction between named perils and open perils policy construction.
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