Michigan · Casualty Insurance Sample Interactive Mind Map
The HO Form Family
A visual breakdown of The HO Form Family — one of the concepts you can count on seeing on the exam.
The TESTivity Interactive Mind Mapping Graphic we picked for the Michigan Casualty Insurance sample is The HO Form Family — and this is a concept you can count on seeing on your pre-licensing exam. Get the structure straight once and those questions turn into free points.
So explore it. Click through, see how the pieces relate, and let the layout do some of the remembering for you.
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Seven forms, each designed for a different type of occupant, property, or coverage level.
The exam tests which form applies to a given scenario, and what type of coverage (open perils vs. named perils) each form provides on the dwelling and personal property. HO-3 is the default answer for "standard homeowners" — but knowing every form is essential.
The exam tests which form applies to a given scenario, and what type of coverage (open perils vs. named perils) each form provides on the dwelling and personal property. HO-3 is the default answer for "standard homeowners" — but knowing every form is essential.
HO-2
Broad Form
Owner-occupants
DwellingNamed Perils
Pers. PropertyNamed Perils
LiabilityYes
HO-3
Special Form ⭐
Owner-occupants · Most Common
DwellingOpen Perils
Pers. PropertyNamed Perils
LiabilityYes
HO-4
Contents Broad Form
Renters / Tenants
DwellingNone
Pers. PropertyNamed Perils
LiabilityYes
HO-5
Comprehensive Form
Owner-occupants · Higher-value homes
DwellingOpen Perils
Pers. PropertyOpen Perils
LiabilityYes
HO-6
Unit Owners Form
Condo unit owners
DwellingWalls-In
Pers. PropertyNamed Perils
Loss AssessmentYes
HO-7
Mobile Home Form
Mobile / manufactured homes
DwellingOpen Perils
Pers. PropertyNamed Perils
LikeHO-3 adapted
HO-8
Modified Coverage Form
Owners of older / historic homes
DwellingNamed Perils
Pers. PropertyNamed Perils
ValuationFunctional/Market
Form
For Whom
Dwelling (Cov A)
Personal Property (Cov C)
Key Feature
HO-2
Owner-occupants
Named Perils
Named Perils
Broad form perils on both; less common today
HO-3 ⭐
Owner-occupants
Open Perils
Named Perils
THE standard form; split coverage approach
HO-4
Renters
None
Named Perils
Renters insurance; no dwelling; has liability
HO-5
Owner-occupants
Open Perils
Open Perils
Only standard form with open perils on Cov C
HO-6
Condo owners
Walls-In
Named Perils
Interior unit coverage; loss assessment
HO-7
Mobile home owners
Open Perils
Named Perils
HO-3 structure adapted for mobile homes
HO-8
Older home owners
Named Perils
Named Perils
Functional/market value; not replacement cost
When the exam says "standard homeowners policy" — the answer is always HO-3. The split approach — broader coverage on the structure, narrower on contents — is the defining feature every exam candidate must know cold.
🏠 Dwelling & Other Structures — Open Perils
📦 Personal Property — Named Perils
What It Means
All causes of loss are covered EXCEPT those the policy specifically excludes. The insured does not need to identify which peril caused the damage — just that it happened.
What It Means
Only the causes of loss specifically listed in the policy are covered. If the cause of the loss is not on the named perils list, there is no coverage — even for accidental, unexpected events.
Burden of Proof
The insurer bears the burden — it must show that a specific exclusion applies in order to deny a dwelling claim. The insured just needs to show the loss occurred.
Burden of Proof
The insured bears the burden — must identify and prove that a named peril caused the personal property loss. "Something happened to my TV" is not enough.
Common Exclusions
Flood, earthquake, normal wear and tear, intentional acts, faulty workmanship, neglect, government action, ordinance/law (unless endorsed), nuclear hazard.
Key Named Perils
Fire, lightning, windstorm/hail, explosion, theft, vandalism, falling objects, weight of ice/snow, accidental water discharge, vehicle damage, smoke, freezing of plumbing.
Why Broader on Dwelling
The home's structure is the most significant asset. Open perils protection ensures that an unusual or unexpected cause of damage (a horse kicks through the wall) doesn't go uncovered simply because it wasn't anticipated.
Why Narrower on Contents
Personal property is more susceptible to mysterious disappearance, unexplained damage, and moral hazard. Named perils limits coverage to demonstrable, verifiable causes — protecting against fraudulent claims.
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Coverage A & B — The Structure
The dwelling (Coverage A) and other structures (Coverage B) are covered on an open perils / all-risk basis. A loss is covered unless the policy specifically excludes the cause. Mysterious damage with no identifiable cause is typically covered — the insurer must point to a specific exclusion to deny it.
Exam angle
Open perils on structure = "covered unless excluded." Insurer bears burden to name the exclusion that applies.
📦
Coverage C — Personal Property
Personal property is covered on a named perils basis — the same broad form named perils list as the HO-2's Coverage C. Fire, theft, windstorm, vandalism, falling objects, and others are covered. A cause not on the list is not covered, regardless of how accidental it was.
Exam angle
Named perils on personal property = "covered only if listed." Insured bears burden to identify the named peril that caused the loss.
👥
Who It Covers & What Else It Includes
Owner-occupants of one- to four-family residences. Also includes:
Coverage D — Loss of use (additional living expenses while the home is uninhabitable)
Coverage E — Personal liability
Coverage F — Medical payments to others
Coverage D — Loss of use (additional living expenses while the home is uninhabitable)
Coverage E — Personal liability
Coverage F — Medical payments to others
Exam angle
HO-3 is for owner-occupants only. Tenants use HO-4. Condo owners use HO-6. The form number identifies the occupancy type.
HO-2, HO-3, and HO-5 form a progression of increasing coverage breadth for owner-occupants.
Each step adds broader protection. The critical exam distinction: HO-3 covers personal property on named perils while HO-5 covers it on open perils — making HO-5 the only standard form with open perils on Coverage C.
Each step adds broader protection. The critical exam distinction: HO-3 covers personal property on named perils while HO-5 covers it on open perils — making HO-5 the only standard form with open perils on Coverage C.
HO-2
Broad Form
DwellingNamed Perils
Pers. PropertyNamed Perils
Both the dwelling and personal property are covered by the Broad form named perils list. The insured must identify a covered peril for any claim.
Exam note: Less common today — most buyers upgrade to HO-3. Stepping stone in the coverage progression.
HO-3
Special Form ⭐ Most Common
DwellingOpen Perils ↑
Pers. PropertyNamed Perils
The dwelling upgraded to open perils — all causes covered except exclusions. Personal property remains on named perils. The split is the defining characteristic of the HO-3.
Exam default: "Standard homeowners policy" = HO-3. Always.
HO-5
Comprehensive Form
DwellingOpen Perils
Pers. PropertyOpen Perils ↑
Personal property upgraded to open perils — matching the dwelling. The only standard form offering open perils on Coverage C. Available for higher-value, well-maintained homes.
Key distinction from HO-3: HO-5 adds open perils to personal property. That is the only upgrade.
Open perils on dwelling
Named perils on personal property
Named perils on personal property
Open perils on dwelling
Open perils on personal property ← the upgrade
Open perils on personal property ← the upgrade
Four forms designed for specific occupant types or property situations.
Each addresses a coverage need that the standard HO-2/3/5 forms can't meet. Renters (HO-4), condo owners (HO-6), mobile home owners (HO-7), and owners of older homes (HO-8) all need a form tailored to their situation.
Each addresses a coverage need that the standard HO-2/3/5 forms can't meet. Renters (HO-4), condo owners (HO-6), mobile home owners (HO-7), and owners of older homes (HO-8) all need a form tailored to their situation.
Renters Insurance
🔑
Contents Broad Form
Designed for tenants who rent their home. Since the tenant has no insurable interest in the building structure — that's the landlord's responsibility — the HO-4 covers only personal property and liability.
No Coverage A or B — there is no dwelling coverage. The landlord's property policy covers the building.
Coverage E and F (liability) apply — a renter can still be sued for injuring a guest or damaging the landlord's property.
No Coverage A or B — there is no dwelling coverage. The landlord's property policy covers the building.
Coverage E and F (liability) apply — a renter can still be sued for injuring a guest or damaging the landlord's property.
Exam angle
HO-4 = renters only. No dwelling coverage. Personal property (named perils) + liability. Landlord's policy is not the tenant's responsibility.
Condo Insurance
🏢
Unit Owners Form
Designed for condominium unit owners. The condo association's master policy covers the building, exterior, and common areas. The HO-6 covers what the master policy doesn't: the unit owner's interior ("walls-in") — floors, walls, ceilings, built-in fixtures — plus personal property and liability.
Loss assessment coverage is a key feature: if the condo association levies a special assessment against unit owners for a major covered loss (e.g., the master policy deductible), the HO-6 can cover the unit owner's share up to the policy limit.
Loss assessment coverage is a key feature: if the condo association levies a special assessment against unit owners for a major covered loss (e.g., the master policy deductible), the HO-6 can cover the unit owner's share up to the policy limit.
Exam angle
HO-6 = condo owners. Walls-in dwelling coverage (not the exterior). Master policy covers the building. Loss assessment coverage = unique HO-6 feature.
Mobile Home Form
🏕️
Mobile Home Form
Adapts homeowners coverage for mobile homes and manufactured housing. The coverage structure is similar to the HO-3 — open perils on the dwelling structure, named perils on personal property — but the form addresses the unique characteristics of mobile homes.
Mobile homes have different construction standards, transportation risks, and tie-down requirements that standard homeowners forms don't contemplate. The HO-7 adds provisions specific to these needs.
Mobile homes have different construction standards, transportation risks, and tie-down requirements that standard homeowners forms don't contemplate. The HO-7 adds provisions specific to these needs.
Exam angle
HO-7 = mobile or manufactured homes. Coverage parallels HO-3 (open/named). Mobile home-specific provisions distinguish it from standard forms.
Older / Historic Homes
🏛️
Modified Coverage Form
Designed for older homes where replacement cost significantly exceeds market value — historic houses, architecturally unique structures. Providing full replacement cost would create adverse selection: the insured would be over-insured relative to the home's economic value.
The HO-8 settles losses at functional replacement cost or market value rather than full replacement cost. Named perils on the dwelling (more restricted list than HO-3).
Example: A Victorian home worth $180,000 on the market might cost $750,000 to rebuild identically. The HO-8 provides coverage based on functional/market value instead.
The HO-8 settles losses at functional replacement cost or market value rather than full replacement cost. Named perils on the dwelling (more restricted list than HO-3).
Example: A Victorian home worth $180,000 on the market might cost $750,000 to rebuild identically. The HO-8 provides coverage based on functional/market value instead.
Exam angle
HO-8 = older homes, replacement cost > market value. Settles at functional replacement cost or market value — NOT full replacement cost. Named perils on dwelling.
🎯
Top Exam Tips — The HO Form Family
1. HO-3 is the default answer for "standard homeowners policy." Open perils on dwelling; named perils on personal property — the split is the defining characteristic.
2. HO-5 is the only standard form with open perils on personal property. HO-3 vs. HO-5: same dwelling coverage, different personal property coverage.
3. HO-4 = renters. No dwelling coverage. Personal property (named perils) + liability. Tenant has no insurable interest in the structure.
4. HO-6 = condo owners. Walls-in Coverage A. Master policy covers the exterior. Loss assessment coverage is the unique HO-6 feature.
5. HO-8 = older homes where RC > market value. Settles at functional replacement cost or market value — NOT full replacement cost.
6. HO-7 = mobile homes, coverage parallels HO-3 with mobile-home-specific provisions.
2. HO-5 is the only standard form with open perils on personal property. HO-3 vs. HO-5: same dwelling coverage, different personal property coverage.
3. HO-4 = renters. No dwelling coverage. Personal property (named perils) + liability. Tenant has no insurable interest in the structure.
4. HO-6 = condo owners. Walls-in Coverage A. Master policy covers the exterior. Loss assessment coverage is the unique HO-6 feature.
5. HO-8 = older homes where RC > market value. Settles at functional replacement cost or market value — NOT full replacement cost.
6. HO-7 = mobile homes, coverage parallels HO-3 with mobile-home-specific provisions.
Exam vocabulary
Key Terms to Know
Open Perils (All-Risk)
Coverage for all causes of loss except those the policy specifically excludes. The insurer must name an exclusion to deny a claim.
Named Perils
Coverage only for causes of loss specifically listed in the policy. If the cause isn't named, it isn't covered. The insured must prove the cause was a listed peril.
HO-3 (Special Form)
The standard homeowners form. Open perils on dwelling and other structures; named perils on personal property. The default exam answer for "standard homeowners."
HO-5 (Comprehensive)
Open perils on both dwelling AND personal property. The only standard form offering open perils on Coverage C. Available for higher-value homes.
HO-4 (Renters)
Designed for tenants. No Coverage A or B — the tenant has no insurable interest in the structure. Covers personal property (named perils) and liability.
HO-6 (Condo)
Designed for condominium unit owners. Covers interior unit structures (walls-in), personal property, liability, and loss assessments from the condo association.
HO-8 (Modified)
For older homes where replacement cost exceeds market value. Settles losses at functional replacement cost or market value, not full replacement cost.
Walls-In Coverage
The HO-6 Coverage A — covers the interior unit structure (floors, walls, ceilings, fixtures) from the walls inward. The building exterior is covered by the condo association's master policy.
Loss Assessment Coverage
An HO-6 feature that covers the unit owner's share of a special assessment levied by the condo association after a major covered loss.
Functional Replacement Cost
Paying the cost of modern materials that serve the same function, rather than identical historic materials. Used in HO-8 and for older structures where true like-kind replacement is impractical.
Like learning this way? There's a whole library of them.
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