The letters on your declarations page, HO-A, HO-B, or HO-3, tell you which family of policy you hold. That family decides what has to be true before the policy pays. [3]
Two form families, not three flavors
These labels come from two families. HO-A and HO-B are Texas forms. HO-3 is the national form TDI approved for use in Texas, and TDI’s order approving the ISO program describes the Homeowners 3 Special Form as analogous to the Texas Homeowners Policy Form-B. That order also notes the HO-B was the predominant form used in Texas for owner-occupied dwellings. [4]
Named perils vs open perils, the split that matters
TDI sorts home policies into two types. An all-risk policy, also called an open perils policy, covers any event the policy does not specifically exclude. A named perils policy covers only the events listed in the policy. [3]
Open perils is the broader of the two, and TDI is clear it is not unlimited. All-risk policies usually exclude termites, wear and tear, sewer backups, floods, and earthquakes, and usually do not pay to remove mold or repair a foundation. Those exclusions are not theoretical here. Foundation movement and sudden water damage are exactly the losses a DFW homeowner is likely to file for, which is why the endorsements attached to a form can matter as much as the form itself. [3]
Why the cheapest quote is often the narrowest form
Named perils policies cost less, TDI notes, but they might not provide all the coverage you need. Some cover fire, lightning, explosion, theft, and vandalism, while others cover a single event. The cheapest quote in a stack is often the narrowest form with the shortest covered-perils list, and the only way to know is to read it. TDI’s guidance is direct: read the policy’s list of Perils Insured Against to know exactly what the policy covers. [3]
Which form you actually hold
The declarations page names the form, and TDI describes that page as the summary of your coverages, dollar limits, and deductibles. But the details behind the name move with endorsements. Most companies offer endorsements, or policy add-ons, that let you increase or add coverage, and TDI’s list includes jewelry, fine arts, or electronics, along with sewer or drain backup, foundation or slab damage, and mold removal. [2]
The form name alone does not tell you how a loss gets valued. Replacement cost and actual cash value can be attached differently to the dwelling and the contents, so the valuation question has to be asked separately from the form question. [1][2]
What to ask at renewal
Three questions settle most of it. Does the form cover open perils or named perils on the dwelling? Does it pay replacement cost or actual cash value? Which water damage and foundation endorsements are attached, and which were dropped at renewal? Lenders generally require an all-risk policy on a financed home, so if the house is paid off the form in force is the one you chose or kept by default. [2][3]
One geographic note. On the Texas coast a home policy may not include wind and hail coverage at all, and a separate policy is needed to be fully covered. That is not the rule in Hurst or the rest of DFW, where wind and hail typically stay inside the policy, but the deductible still deserves its own read. [3]
Ashford note: Policy form names, endorsements, and valuation methods differ by carrier, and some Texas forms are no longer widely written in the current market. An independent agency can tell you which forms our carriers write today and put the covered-perils lists side by side before you renew. Nothing here changes the terms of an existing policy.