An HO-3 is the standard homeowners insurance form and the most commonly purchased home insurance policy. It's also known as special form coverage. If you have an HO-3 policy, you have what is known as open perils or all perils coverage for the dwelling (your house). Open perils means that the policy will cover any peril (something that could cause damage to your house, like fire) as long as it's not specifically excluded in the policy, The personal property coverage on an HO-3 policy, however, is what's known as named perils. That means everything in your house is covered only for damage from a specific list of perils, and anything not listed isn't covered. Your personal property coverage may also be actual cash value rather than replacement cost, although this varies by company. Actual cash value means property is replaced based on its replacement cost (what it would cost to buy new, today) minus depreciation. Replacement cost doesn't include any depreciation.