HO-A vs. HO-B vs. HO-C: Texas Homeowners Policy Forms Compared

Texas homeowners policy forms at a glance

Why Texans still use traditional policy-form terminology

Form-B remains familiar Texas insurance terminology even though many insurers now use ISO forms or their own approved homeowners forms. A homeowner may see the older Form-B label in a policy, mortgage file, comparison chart or prior insurance discussion and then encounter HO-3 terminology when shopping today.

That is why the useful question is not merely which label is newer. It is whether the current policy provides the dwelling, personal-property, loss-of-use and liability protection the homeowner expects, and what exclusions, deductibles and endorsements modify that protection.

How basic and broader Texas forms differ

The traditional basic Texas form is more limited and is based on specifically listed causes of loss. Form-B historically broadened the dwelling coverage considerably. TDI explains the underlying distinction as named-peril versus open-peril coverage: named-peril coverage responds to causes of loss listed in the policy, while open-peril coverage generally responds unless the cause is excluded.

How the traditional Form-B relates to HO-3

No. They are separate policy forms, but this is the comparison with the strongest historical connection. When TDI approved ISO residential property forms for Texas, it described HO 00 03 (Homeowners 3 – Special Form) as analogous to the Texas Homeowners Policy Form-B.

That does not make every modern HO-3 identical to an older Texas Form-B. Forms can change by edition, insurers can use independently filed forms, and endorsements can materially change coverage. Compare the policy being offered rather than relying on the shorthand alone.

Understanding comprehensive-form coverage

The traditional comprehensive Texas form represented the broadest end of the Texas homeowners form spectrum. Under the ISO system, HO 00 05 is the Homeowners 5 – Comprehensive Form. TDI describes HO-5 as similar to HO-3 except that personal property is also covered against direct physical loss subject to stated exceptions, rather than only specified named perils.

Where do HO-1 and HO-2 fit?

HO-1 is commonly used as shorthand for a basic homeowners form, while HO-2 is the broad form. TDI's approved ISO forms identify HO 00 02 as the Homeowners 2 – Broad Form. In its Texas approval order, TDI described HO-2 as analogous to Texas HO-A with an Additional Extended Coverage endorsement—not as a direct replacement for HO-B.

This is why a one-to-one chart saying “HO-A equals HO-1, HO-B equals HO-2, HO-C equals HO-3” can be misleading.

What should a Texas homeowner compare today?

• Whether the dwelling is covered on a named-peril or open-peril basis.
• How personal property is covered and which causes of loss apply.
• Replacement-cost versus actual-cash-value provisions.
• Wind and hail deductibles and any separate percentage deductible.
• Water-related limitations, exclusions and endorsements.
• Roof settlement provisions and cosmetic-damage limitations.
• Loss-of-use coverage.
• Personal liability and medical-payments limits.
• Ordinance or law, foundation, backup of sewer or drain and other optional endorsements.

The policy form matters more than the nickname

Texas permits multiple approved homeowners forms. TDI's current residential statistical plan recognizes traditional HO Policy A, B and C terminology alongside ISO HO 00 02, HO 00 03, HO 00 05 and independently filed forms. Two policies marketed with similar shorthand can therefore differ in important ways.

Ask for the form number and review the declarations, coverage form, endorsements and exclusions. If a quote is being compared with an older Texas homeowners form, compare the actual coverage provisions rather than assuming the names line up perfectly.

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