Every homeowners policy in the U.S. market is built on one of eight ISO-standard forms. Carriers, MGAs, and TPAs configure each form as a distinct product in their policy administration system.
Every homeowners policy in the U.S. market is built on one of eight ISO-standard HO forms. For a P&C carrier or MGA, each form is a distinct product in the policy administration system — its own rates, rules, forms library, and endorsements.
This article is the reference for homeowners insurance carriers, MGAs, TPAs, and program administrators configuring HO products on a modern policy administration platform. It walks through HO-1 through HO-8, what each covers, which buyer segment it targets, and what the platform needs to support it.
HO-1 covers a short list of named perils: fire and smoke, lightning, explosions, hail and windstorms, theft, vandalism, damage from vehicles and aircraft, riots, volcanic eruption. Anything not named is excluded.
Rarely offered today and unavailable in many states. When it is on a carrier's shelf, it is usually a constrained-market form for properties that do not qualify for HO-2 or HO-3.
HO-2 extends HO-1 with additional named perils: falling objects; weight of ice, snow, sleet; freezing of household systems; accidental discharge of water/steam; sudden tearing, cracking, bulging; external power surge.
Still named-perils throughout. Often positioned by carriers as a lower-premium alternative to HO-3 for older homes or rate-sensitive markets.
HO-3 is the volume personal-lines homeowners product. Dwelling is written on an open perils basis (covered unless excluded); personal property remains named perils.
Typical exclusions: flood, earthquake, war, nuclear, intentional acts, wear and tear, neglect, mold. HO-3 is the form most carriers configure first when standing up a homeowners program.
HO-4 is the tenant policy. No dwelling coverage (the building is on the landlord's policy); it covers Coverage C (personal property), Coverage D (loss of use), and Coverage E (personal liability).
Low premium, high unit count. Carriers and MGAs increasingly lead with HO-4 as an acquisition product with a clean path to HO-3 at purchase. Full detail: renters insurance.
HO-5 is the broadest homeowners product. Dwelling and personal property are both written on an open-perils basis, with replacement-cost settlement on personal property standard.
Typically underwritten to newer, well-maintained homes with loss-free history. Carriers often position HO-5 as the upgrade path from HO-3 at renewal.
HO-6 is the unit-owner form for condominiums and cooperatives. It covers the interior (walls-in), personal property, and personal liability; the building shell sits on the association's master policy.
Program administrators and MGAs writing HO-6 need the platform to handle condo association master-policy tracking and allocate coverage cleanly at the walls-in boundary.
HO-7 mirrors HO-3's structure but is written for mobile, manufactured, and modular homes. Open perils on dwelling, named perils on contents, with specific underwriting rules around foundation type and park vs owned-lot siting.
Typically configured as a specialty product, often with different rating territories and inspection requirements than the mainstream HO book.
HO-8 is designed for homes where the cost to rebuild with original materials would far exceed market value. Settlement is on an Actual Cash Value or repair-cost basis rather than full replacement, with a limited named-perils set.
Keeps coverage available on older and historic homes that would otherwise be declinable. Carriers running HO-8 need the platform to support ACV settlement cleanly alongside RCV on the same product shelf.
Does Mercury handle multiple HO forms on one tenant?
Yes. Each ISO HO form (HO-1 through HO-8) is configured as a distinct product in Mercury with its own filed rates, underwriting rules, forms library, and endorsements. A single carrier tenant can write any combination of forms.
How does Mercury manage state-specific form variants?
Mercury's forms library and configurable underwriting rules are date-driven and state-aware, so each state's approved form version, rating plan, and mandatory-offer rules are applied automatically at quote and carried through policy issuance.
Can MGAs running multi-carrier HO programs use Mercury?
Yes. Mercury supports multi-carrier MGA quoting, where one agent-facing workflow fronts multiple carrier paper, each with its own HO product configuration, rates, rules, and forms.
