Types of Insurance Policies: A Complete Guide to Residential, Commercial, and Specialty Coverage

Not all insurance policies are created equal. The type of policy you have determines what perils are covered, how your loss is valued, and what exclusions apply. Most homeowners have an HO-3 and assume it covers everything — it does not. Landlords, tenants, condo owners, business owners, and property investors each need a different policy form, and choosing the wrong one (or not understanding the one you have) can leave you with tens or hundreds of thousands of dollars in uncovered damage.

This article is a reference guide to every major property insurance policy type you are likely to encounter. For each one, we explain what it covers, who needs it, and where the gaps are. If you are filing a claim, start by identifying which policy type you have — it will tell you more about your coverage than anything else.

The Foundation: California Standard Fire Policy

Every fire insurance policy issued in California must conform to the California Standard Fire Policy, codified at Insurance Code § 2070–2071. This statutory form sets the minimum terms for fire coverage in the state. Your homeowner or commercial policy is built on top of this foundation — it can add coverage, but it cannot take away the protections that the Standard Fire Policy provides.

Insurance Code § 2070 requires that every fire insurance policy “shall be in the standard form” set forth in the statute. This means carriers cannot quietly delete basic fire coverage protections through endorsements or policy amendments. The Standard Fire Policy covers direct loss by fire and lightning, and it establishes fundamental policyholder rights that apply regardless of what the carrier’s proprietary policy language says.

Understanding this matters because in a coverage dispute, the statutory standard can override conflicting policy language. If your carrier’s policy form attempts to impose a condition or limitation that conflicts with the Standard Fire Policy, the statute controls. This is a powerful tool in the hands of a knowledgeable policyholder or public adjuster.

Residential Policies

Residential insurance policies are designated by the Insurance Services Office (ISO) with “HO” form numbers. Each form is designed for a specific type of occupancy and ownership. Using the wrong form — or not understanding which form you have — is one of the most common sources of coverage disputes.

HO-3: Special Form (The Standard Homeowner Policy)

The HO-3 is the most common homeowner policy in the United States. If you own a single-family home and have insurance, you almost certainly have some version of an HO-3. It is the policy form that most articles on this site reference, and it is the baseline against which all other residential forms should be compared.

What it covers:

• Coverage A (Dwelling)— Open perils. Covers the structure of your home against all causes of loss unless specifically excluded. This is the broadest standard coverage available for a dwelling.
• Coverage B (Other Structures)— Open perils. Covers detached structures like garages, fences, sheds, and retaining walls. Typically set at 10% of your Coverage A limit.
• Coverage C (Personal Property)— Named perils only. Your belongings are covered only against the 16 perils specifically listed in the policy: fire, lightning, windstorm, hail, explosion, riot, aircraft, vehicles, smoke, vandalism, theft, falling objects, weight of ice/snow/sleet, accidental discharge of water, sudden tearing/cracking/burning of certain systems, and volcanic eruption. If the cause of loss is not on this list, your personal property is not covered under a standard HO-3.
• Coverage D (Loss of Use / ALE)— Additional living expenses if your home is uninhabitable due to a covered loss.
• Coverage E (Personal Liability)— Liability protection if someone is injured on your property or you damage someone else’s property.
• Coverage F (Medical Payments)— Medical payments to others regardless of fault, subject to a per-person limit.

What it does not cover:Standard HO-3 exclusions include flood, earthquake, earth movement, ordinance or law (unless endorsed), mold (often sublimited or excluded), neglect, intentional loss, war, nuclear hazard, and government action. The exclusions section is just as important as the coverage section — read it carefully.

The critical gap:The split between open perils on the dwelling and named perils on personal property catches many policyholders off guard. Your roof might be covered for water damage from a burst pipe (open perils), but the furniture ruined by the same water may not be covered unless “accidental discharge or overflow of water or steam” is one of the named perils — and even then, the named-peril language often has restrictions that the open-peril dwelling coverage does not.

For a detailed walkthrough of how to read your HO-3 policy, see our Policy Interpretation Guide.

HO-4: Tenants Form (Renters Insurance)

The HO-4 is designed for tenants who rent their living space. Because the tenant does not own the building, there is no Coverage A (dwelling) or Coverage B (other structures). The HO-4 covers the tenant’s personal property, liability, and additional living expenses — nothing else.

What it covers:

• Coverage C (Personal Property)— Named perils. The same 16 perils listed in the HO-3 Coverage C. This is the core of a renter’s policy.
• Coverage D (Loss of Use / ALE)— If the rental unit becomes uninhabitable due to a covered loss, the HO-4 pays for temporary housing, meals, and related expenses.
• Coverage E (Personal Liability)— Liability protection, typically $100,000 to $300,000. This is often the most valuable part of a renter’s policy.
• Coverage F (Medical Payments)— Medical payments to others.

What it does not cover:The building itself. If a pipe bursts and damages the walls, floors, and cabinets, that is the landlord’s claim under the landlord’s dwelling fire policy (DP-3). The tenant’s HO-4 only covers the tenant’s personal belongings damaged by the same event. This split creates coordination problems that are discussed in detail in our Landlord vs. Tenant Claims article.

Who needs it:Every renter. Renters insurance is inexpensive — typically $15 to $30 per month — and provides critical protection for personal property and liability. Many landlords require tenants to carry an HO-4 as a condition of the lease, and they should.

HO-5: Comprehensive Form

The HO-5 is the broadest standard homeowner policy available. Unlike the HO-3, which provides open-perils coverage only on the dwelling and named-perils coverage on personal property, the HO-5 provides open-perils coverage on both the dwelling and personal property.

What it covers:

• Coverage A (Dwelling)— Open perils, same as HO-3.
• Coverage B (Other Structures)— Open perils, same as HO-3.
• Coverage C (Personal Property) — Open perils. This is the key difference. Under an HO-5, your belongings are covered against any cause of loss unless specifically excluded. You do not have to prove the loss was caused by one of the 16 named perils — the burden shifts to the insurer to prove an exclusion applies.
• Coverages D, E, and F— Same as HO-3.

Why it matters:The HO-5 eliminates the most frustrating coverage gap in the HO-3 — the named-perils limitation on personal property. Under an HO-3, if your laptop is damaged by a cause of loss not on the named-perils list (such as a power surge from utility work), you have no coverage. Under an HO-5, the same loss is covered unless the insurer can point to a specific exclusion.

The trade-off:HO-5 policies cost more than HO-3 policies — typically 5% to 15% more in premium. Not every carrier offers them, and some carriers offer them only for newer or higher-value homes. But for policyholders who want the broadest available coverage with the fewest gaps, the HO-5 is the gold standard for residential insurance.

HO-6: Condo Unit Owners Form

The HO-6 is designed specifically for condominium unit owners. Condos present a unique insurance challenge: the homeowners association (HOA) carries a master policy on the building’s common elements and structure, while individual unit owners need their own coverage for the interior of their unit, personal property, and liability.

What it covers:

• Coverage A (Dwelling / Unit Improvements)— Covers the interior of your unit, often described as “walls-in” coverage. This includes flooring, cabinets, countertops, fixtures, built-in appliances, and any improvements or upgrades you have made. Named perils in the standard form, though many carriers offer open-perils endorsements.
• Coverage C (Personal Property)— Named perils. Same 16 perils as the HO-3.
• Coverage D (Loss of Use / ALE)— Additional living expenses if the unit is uninhabitable.
• Loss Assessment Coverage— This is unique to the HO-6. If the HOA levies a special assessment against unit owners to cover a loss that exceeds the master policy’s limits, your HO-6 can help pay your share. The standard loss assessment limit is often $1,000, but it can and should be endorsed higher.
• Coverages E and F (Liability and Medical Payments)— Same as other HO forms.

The coordination problem:The biggest issue with condo claims is figuring out where the HOA’s master policy stops and the unit owner’s HO-6 begins. The CC&Rs (Covenants, Conditions & Restrictions) for the association usually define this boundary, and it varies. Some CC&Rs make the HOA responsible for everything except the unit owner’s personal property and improvements. Others make the unit owner responsible for everything inside the drywall. Getting this wrong means either a gap in coverage or a fight between two insurers over who pays.

For more on condo-specific claim issues, see Condo and HOA Claims and Loss Assessment Coverage.

HO-8: Modified Coverage Form (Older and Historic Homes)

The HO-8 is designed for older or historic homes where the cost to replace the home using original materials and construction methods would far exceed the home’s market value. Think Victorian-era homes with hand-carved moldings, plaster walls, and obsolete construction techniques. A standard replacement cost policy on such a home would be prohibitively expensive, so the HO-8 modifies how losses are valued.

What it covers:

• Coverage A (Dwelling)— Named perils only (not open perils like the HO-3). Losses are typically paid on an actual cash value (ACV) basis or a “functional replacement cost” basis, meaning the insurer will pay to replace the damaged component with modern materials that serve the same function — not to replicate the original craftsmanship.
• Coverage C (Personal Property)— Named perils, similar to other HO forms.
• Coverages D, E, and F— Same as other HO forms, though limits may be lower.

The key limitation: The HO-8 is significantly narrower than the HO-3. It uses named perils instead of open perils for the dwelling, and it does not guarantee replacement with identical materials. If your 1920s bungalow has original hardwood floors and plaster walls, an HO-8 policy may only pay to replace them with laminate and drywall. The functional replacement cost approach can leave a homeowner with a very different house than the one that was damaged.

Who has one:HO-8 policies are most common on pre-war homes, historic properties, and homes in older urban neighborhoods where replacement cost exceeds market value. If you own such a home, check your policy form number carefully — you may have been placed in an HO-8 without fully understanding the trade-offs.

DP-1, DP-2, DP-3: Dwelling Fire Policies (Landlord Policies)

Dwelling fire policies — designated DP-1, DP-2, and DP-3 — are designed for properties that are not owner-occupied. If you own a rental property, a vacant property, or a property used seasonally, you likely need a dwelling fire policy rather than a standard homeowner policy.

DP-1 (Basic Form): The most limited dwelling fire policy. Named perils only, and the list is short: fire, lightning, and internal explosion. Extended coverage endorsements can add windstorm, hail, riot, smoke, aircraft, vehicles, and volcanic eruption. Losses are typically paid on an ACV basis. The DP-1 is bare-bones coverage, often used for vacant properties or properties in high-risk areas where broader coverage is unavailable or unaffordable.

DP-2 (Broad Form):A step up from the DP-1. Named perils, but the list is longer — similar to the named perils in an HO-3’s Coverage C. Can be written on either an ACV or replacement cost basis. More commonly used for occupied rental properties where the landlord wants decent coverage without paying for an open-perils form.

DP-3 (Special Form):The broadest dwelling fire policy. Open perils on the dwelling, named perils on personal property (if any is covered — most landlord DP-3 policies do not cover tenant belongings). The DP-3 is the landlord’s equivalent of the HO-3 and is the standard recommendation for any landlord who wants meaningful protection for a rental property.

What dwelling fire policies do not cover:Tenant personal property. The landlord’s DP policy covers the building and the landlord’s property inside it (appliances the landlord provides, for example), but it does not cover anything belonging to the tenant. The tenant needs a separate HO-4 renter’s policy for that.

Dwelling fire policies also typically do not include personal liability coverage for the landlord. A separate landlord liability policy or umbrella policy is usually needed.

Guaranteed and Extended Replacement Cost Endorsements

These are not separate policy types but rather endorsements that modify the loss settlement provisions of an existing policy. They are critically important, and the difference between having one and not having one can amount to hundreds of thousands of dollars after a major loss.

• Extended Replacement Cost— Provides a buffer above your Coverage A limit, typically 25% to 50%. If your dwelling limit is $500,000 and you have a 50% extended replacement cost endorsement, the insurer will pay up to $750,000 to rebuild. This is the most common upgrade and is included by default in many California homeowner policies.
• Guaranteed (100% or Unlimited) Replacement Cost— The insurer agrees to pay whatever it actually costs to rebuild your home, regardless of the Coverage A limit. This is the strongest protection available, and it was more widely offered before the California wildfire crises of 2017, 2018, 2020, and 2025. Many carriers have since pulled back or stopped offering guaranteed replacement cost altogether.

California Insurance Code § 2051.5 and § 2051 govern how replacement cost is calculated. Under § 2051.5(b), if the insurer does not offer a guaranteed or extended replacement cost endorsement, it must provide specific disclosures about the limitations of standard replacement cost coverage. These disclosures are required at policy inception and renewal.

For a full breakdown of how these endorsements work and why they matter, see Replacement Cost vs. Guaranteed Replacement Cost.

Commercial Policies

Commercial property insurance uses a different set of ISO forms than residential coverage. The forms are modular — a commercial policy is assembled from separate coverage forms, causes of loss forms, and conditions forms, rather than being a single integrated document like an HO-3. This modular structure gives more flexibility but also more complexity.

CP 10 00: Building and Personal Property Coverage Form

The CP 10 00 is the standard commercial property coverage form. It defines what property is covered — the building, business personal property, and personal property of others — but it does notdefine which perils are covered. For that, a separate “causes of loss” form is attached to the policy.

What it covers:

• Building— The structure, permanently installed fixtures, outdoor fixtures, machinery and equipment used for building maintenance, and additions under construction.
• Business Personal Property— Furniture, equipment, stock, supplies, and all other property owned by the insured and used in the business. This category also includes tenant improvements and betterments if the insured is a tenant.
• Personal Property of Others— Property belonging to others that is in the insured’s care, custody, or control. Coverage is limited and typically only provides protection while the property is on the insured premises.

Causes of loss forms: The CP 10 00 is paired with one of three causes of loss forms:

1. CP 10 10 (Basic Form)— Named perils: fire, lightning, explosion, windstorm, hail, smoke, aircraft, vehicles, riot, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.
2. CP 10 20 (Broad Form)— Adds several perils to the basic list, including falling objects, weight of snow/ice/sleet, and water damage from certain sources.
3. CP 10 30 (Special Form)— Open perils. Covers all causes of loss unless specifically excluded. This is the commercial equivalent of the HO-3’s open-perils dwelling coverage and is the form most commercial policyholders should want.

CP 10 30: Causes of Loss — Special Form

The CP 10 30 deserves its own discussion because it is the most important causes of loss form in commercial insurance. It provides open-perils coverage, meaning it covers all risks of direct physical loss unless a specific exclusion applies.

Key exclusions in the CP 10 30:

• Ordinance or law (unless endorsed)
• Earth movement (earthquake, landslide, mine subsidence)
• Governmental action
• Nuclear hazard
• Power failure originating off-premises
• War and military action
• Water — including flood, surface water, tidal water, and sewer backup (unless endorsed)
• Fungus, wet rot, dry rot, and bacteria (often sublimited)
• Virus or bacteria (added in recent years to many forms)

The CP 10 30 also includes several important coverage extensions for things like debris removal, preservation of property, fire department service charges, pollutant cleanup, and increased cost of construction. These extensions are built into the form but are subject to sublimits that may be inadequate for a large loss.

Coinsurance:Commercial property policies almost always include a coinsurance clause, which requires the insured to maintain coverage equal to a specified percentage (usually 80%, 90%, or 100%) of the property’s value. If you are underinsured, the coinsurance penalty reduces your claim payment proportionally — even on a partial loss. This is one of the most punishing provisions in commercial insurance and catches many business owners off guard.

BP: Businessowners Policy (BOP)

The businessowners policy — commonly called a BOP — is a package policy designed for small to mid-sized businesses. It combines property coverage, general liability coverage, and business income/extra expense coverage into a single policy, similar to how a homeowner policy bundles property and liability.

What it covers:

• Building and Business Personal Property— The property coverage in a BOP is similar to the CP 10 00 form but uses special-form (open perils) coverage as the default. This is a significant advantage over buying a standalone commercial property policy, which may default to basic or broad form.
• Business Income and Extra Expense— Included by default. Covers lost income and extra costs to continue operations during a covered loss.
• General Liability— Bodily injury and property damage liability, personal and advertising injury liability, and medical payments.

Advantages: Simplicity and cost. A BOP is easier to understand than a custom commercial package policy, and it is typically less expensive because the coverages are bundled. For a small retail store, office, or restaurant, a BOP often provides adequate coverage without the complexity of assembling separate forms.

Limitations:BOPs are not available to all businesses. They are typically limited to businesses under a certain size (measured by revenue, square footage, or employee count). Larger or more complex operations — manufacturing facilities, contractors, businesses with significant inventory — usually need a custom commercial package policy instead. BOPs also offer less flexibility in tailoring coverage limits and endorsements.

Specialty Policies

Standard homeowner and commercial policies exclude certain perils entirely — most notably flood and earthquake. Other types of property or construction activities require coverage forms that do not fit neatly into the standard residential or commercial frameworks. The following specialty policies fill those gaps.

Flood Insurance: NFIP and Private Flood Policies

Flood damage is always excluded from standard homeowner and commercial property policies. This is not optional, and there is no endorsement that adds flood coverage to your HO-3 or commercial property form. If you want flood coverage, you need a separate flood policy.

NFIP (National Flood Insurance Program): The federal program administered by FEMA. NFIP policies are available to any property in a community that participates in the program (most communities do). Coverage limits are $250,000 for a residential dwelling and $100,000 for contents. Commercial limits are $500,000 for the building and $500,000 for contents. NFIP policies have a 30-day waiting period from purchase before coverage begins.

Limitations of NFIP:

• Maximum coverage of $250,000 for dwelling — far below the value of many California homes
• Basement coverage is severely limited (only structural elements, not finished spaces)
• No coverage for additional living expenses
• No coverage for loss of use or business income
• Contents are covered at ACV only, not replacement cost
• Detached structures are not covered under the dwelling limit (they must be insured separately)

Private Flood Insurance: Private carriers have entered the flood market offering policies with higher limits, broader coverage, replacement cost valuation, and shorter waiting periods. Private flood policies may also cover additional living expenses, pool repairs, and landscaping that NFIP does not. However, private flood carriers can non-renew or change terms, while NFIP coverage is backed by the federal government and is generally always available.

For a detailed comparison, see our Flood Insurance: NFIP vs. Private article.

Earthquake Insurance: CEA and Private Earthquake Policies

Like flood, earthquake is always excludedfrom standard property policies. In California, this exclusion is particularly consequential given the state’s seismic risk. Earthquake coverage must be purchased separately.

CEA (California Earthquake Authority): The CEA is a publicly managed, privately funded organization that provides residential earthquake insurance through participating carriers. It is the largest provider of residential earthquake insurance in California. CEA policies cover:

• Dwelling damage from earthquake and aftershocks
• Personal property (with a separate deductible)
• Loss of use / additional living expenses (limited)

CEA limitations:CEA policies have high deductibles — typically 5% to 25% of the dwelling coverage limit. On a $700,000 home with a 15% deductible, the first $105,000 of damage comes out of your pocket. CEA policies also exclude many items that homeowners might expect to be covered: pools, patios, fences, detached structures, driveways, retaining walls, and masonry veneer are typically excluded or sublimited.

Private Earthquake Insurance: Private carriers offer earthquake policies with lower deductibles, broader coverage, and fewer exclusions than the CEA. Private earthquake policies may cover pools, detached structures, and landscaping. They may also offer higher loss-of-use limits and replacement cost valuation for contents. The trade-off is higher premiums and the risk that a private carrier may pull out of the market or become insolvent after a major earthquake.

California Insurance Code § 10081–10089.4 requires every residential property insurer to offer earthquake coverage or provide a written notice that the policyholder has declined it. This is a mandatory offer requirement, not a mandatory purchase requirement.

For more detail, see our Earthquake Insurance article.

DIC: Difference in Conditions Policies

A Difference in Conditions (DIC) policy is a gap-filling policy designed to supplement a limited primary policy. In California, DIC policies are most commonly paired with FAIR Plan policies.

The FAIR Plan only covers fire and a few related perils. It does not cover theft, water damage, liability, or many other perils that a standard homeowner policy would cover. A DIC policy fills these gaps by providing the coverages that the FAIR Plan excludes, effectively assembling a coverage package that approximates a standard homeowner policy.

What a DIC typically covers:

• Theft
• Water damage (burst pipes, appliance leaks, rain intrusion)
• Personal liability
• Additional living expenses beyond the FAIR Plan’s limits
• Personal property at replacement cost
• Falling objects, weight of ice/snow, vehicle damage, and other standard HO-3 perils

Important considerations:DIC policies are non-standard — there is no single ISO form. Each carrier writes its own DIC form, and the terms can vary significantly. Some DIC policies are very broad; others have exclusions and limitations that leave unexpected gaps. Read the DIC policy just as carefully as you would read any other policy. Also, DIC policies and FAIR Plan policies are issued by different companies, which creates coordination challenges during a claim.

For more on DIC coverage and how it works with the FAIR Plan, see our DIC Policies guide.

Builder’s Risk Insurance

Builder’s risk insurance — also called course of construction coverage — is a specialized property policy that covers buildings and materials during construction, renovation, or remodeling. It is a temporary policy that covers the project from groundbreaking (or renovation start) through completion.

What it covers:

• The structure under construction (including foundations, framing, and partially completed work)
• Materials and supplies on-site or in transit to the site
• Temporary structures used during construction (scaffolding, construction trailers)
• Soft costs (architectural fees, permits, financing costs) if endorsed

What it typically excludes:

• Faulty workmanship or defective materials (the resulting damage may be covered, but not the cost to redo the defective work itself)
• Theft of materials left unsecured (some policies require fencing or security)
• Damage from earth movement or flood (same as standard property policies)
• Wear and tear, gradual deterioration, or weather damage to exposed materials

Who needs it:Homeowners doing major renovations, contractors building new homes, and developers constructing commercial buildings. Standard homeowner policies typically exclude or limit coverage for construction activities, and a standard commercial policy does not cover a building that does not yet exist. Builder’s risk fills that gap.

For more detail, see our Builder’s Risk article.

Inland Marine Insurance

Inland marine insurance is one of the most misunderstood types of property coverage. Despite the name, it has nothing to do with boats. “Marine” refers to the historical origin of the coverage in ocean marine (cargo) insurance. Inland marine evolved to cover property that moves, property in transit, or property that does not fit neatly into standard property policy categories.

What it covers:

• Contractors’ equipment and tools— Tools and equipment that travel from job site to job site are typically excluded or sublimited under standard commercial property policies. An inland marine “contractors’ equipment” floater covers them wherever they go.
• Fine arts, jewelry, musical instruments, and collectibles— High-value personal property that exceeds the special limits of liability in a standard homeowner policy.
• Electronic data processing equipment— Computers and tech equipment with values that exceed standard personal property sublimits.
• Property in transit— Goods being shipped or transported.
• Installation floaters— Materials being installed at a customer site.

Inland marine policies are typically written on an open-perils basis with very few exclusions, making them some of the broadest property coverage available. They are also “floater” policies, meaning coverage follows the property wherever it goes rather than being tied to a specific location.

For more information, see our Inland Marine article.

The California FAIR Plan: Insurer of Last Resort

The California FAIR Plan deserves special mention in any discussion of policy types because an increasing number of California homeowners are being forced onto it. As major carriers like State Farm, Allstate, and USAA have pulled back from high-risk areas, the FAIR Plan has grown to over 680,000 policies — more than double its size from just a few years ago.

The FAIR Plan is not a standard homeowner policy. It is a bare-bones fire insurance policy that covers fire, lightning, internal explosion, and smoke from a hostile fire. It does not cover theft, water damage, liability, or many other perils that a standard HO-3 would cover. If you have a FAIR Plan policy, you almost certainly need a DIC (Difference in Conditions) policy to fill the gaps.

The FAIR Plan is funded by assessments on all property insurers doing business in California, proportional to their market share. It is not funded by taxpayers. However, after a catastrophic loss, the assessments on private carriers can be passed through to policyholders as surcharges — meaning every California property insurance customer ultimately helps pay for FAIR Plan losses.

For a complete guide, see our California FAIR Plan article.

How to Choose the Right Policy Type

The right policy depends on your situation. Here is a quick reference:

• Owner-occupied single-family home: HO-3 (standard) or HO-5 (comprehensive). Add extended or guaranteed replacement cost, ordinance or law, and scheduled personal property endorsements as needed.
• Renter: HO-4. Make sure the personal property limit reflects what you actually own, and choose replacement cost valuation over ACV.
• Condo owner:HO-6. Review your CC&Rs to understand the boundary between the HOA master policy and your unit owner policy. Increase the loss assessment limit above the standard $1,000.
• Older or historic home: Check whether you have an HO-8. If so, understand the ACV or functional replacement cost limitations. Consider whether you can obtain an HO-3 from a specialty carrier instead.
• Landlord (rental property): DP-3 (open perils). Require tenants to carry HO-4 policies as a condition of the lease.
• Small business: BOP for simplicity, or a custom commercial package (CP 10 00 + CP 10 30) for more control.
• FAIR Plan policyholder: Pair with a DIC policy. Do not assume the FAIR Plan alone provides adequate coverage.
• Everyone in California:Consider separate flood and earthquake policies. Both perils are excluded from every standard property policy — residential and commercial.

Quick Reference: Policy Types at a Glance

A Note on Endorsements and Manuscripted Policies

The ISO form numbers discussed in this article — HO-3, CP 10 00, CP 10 30, and so on — are standardized forms used by most carriers. However, many carriers issue proprietary or “manuscripted” policies that use different form numbers and modified language. State Farm, for example, does not use ISO forms — its homeowner policy is a proprietary form that is similar to but not identical to an HO-3. USAA, Amica, and other carriers also use their own forms.

Even when a carrier uses ISO forms, the policy is almost always modified by dozens of endorsements — some broadening coverage, others restricting it. Two HO-3 policies from different carriers can have very different effective coverage once endorsements are factored in. Never assume that your policy covers what a “standard HO-3” covers without actually reading the endorsements attached to your specific policy.

In California, state-mandated endorsements further modify standard ISO forms to comply with California Insurance Code requirements. These California-specific endorsements often provide stronger policyholder protections than the base ISO language, particularly regarding claims handling timelines under California Code of Regulations, Title 10, § 2695.1 et seq. (the Fair Claims Settlement Practices Regulations).

The Bottom Line

Your policy type is the single most important factor in determining your coverage. An HO-3 and an HO-8 can insure the same house for the same dollar amount, but the HO-3 provides dramatically broader protection. A commercial policy with the CP 10 30 special form and the same policy with the CP 10 10 basic form cover fundamentally different risks. Knowing which policy type you have — and what that type does and does not cover — is the foundation of every successful insurance claim.

If you are unsure what type of policy you have, or if you suspect your coverage is inadequate, consult a licensed public adjuster or an independent insurance agent who can review your policy and identify gaps before a loss occurs. The time to fix coverage problems is before you need to file a claim — not after.