Which type of homeowners insurance policy is the most commonly used?

The most commonly used homeowners insurance policy is the HO-3 Special Form. This policy provides comprehensive coverage for the structure of the home against a wide range of risks, known as "perils," while also covering personal property within the home on a named-perils basis. The HO-3 is favored because it combines both dwelling coverage and personal property coverage, making it versatile and suitable for a majority of homeowners.

This policy protects against common risks such as fire, theft, hail, and vandalism, which are typically covered under an all-risk or open-perils approach for the dwelling portion. For the personal property, it will list specific risks that are covered, providing ample coverage for the most common issues homeowners might face.

The popularity of the HO-3 is also due to its balance between affordability and extensive coverage, making it a practical choice for a wide array of homeowners. Other types of policies, such as the HO-1 Basic Form and the HO-2 Broad Form, offer more limited coverage and are less common today, as they do not provide as comprehensive protection as the HO-3. The DP-3 Special Form, while offering extensive coverage for dwellings, is primarily designed for dwelling property, not for owner-occupied homes,