When we search for protection for our homes, we often see the terms home insurance and homeowners insurance used as if they mean the same thing. I’ve been there too—it feels like every website, agent, and forum mixes them up. But once we dig a little deeper, we realize these two aren’t identical. Understanding the difference helps you avoid coverage gaps, prevents overpaying, and ensures you and I choose the exact policy our property needs.

Let’s break this down in a clear, conversational way so you can confidently decide what works best for your situation.

Home Insurance vs Homeowners Insurance

When people say home insurance, they may be talking about any type of property coverage, depending on the situation. It’s a broad, catch-all term that can include homeowners, condo, renters, or even landlord insurance.

Homeowners insurance, on the other hand, is much more specific. It’s meant for people who own and live in their homes, and it protects the house itself, your personal belongings, your liability if someone gets hurt on your property, and even your living expenses if the home becomes uninhabitable.

When we say home insurance, we’re talking about a wide range of policies that protect different types of residential properties. It includes:

Homeowners insurance (HO-1 to HO-8)
Renters insurance (HO-4)
Condo insurance (HO-6)
Mobile home policies (HO-7)
Landlord or dwelling fire insurance (DP-1/DP-2/DP-3)
Flood and earthquake insurance
Umbrella liability policies

Think of it like saying “vehicle insurance”—it could mean your motorcycle, a Tesla, or a delivery truck. The term alone doesn’t tell us how the home is used or who lives in it.

Homeowners insurance (usually HO-3 or HO-5) is one policy under the home-insurance umbrella. It’s meant only for people who own and live in their homes. Carriers across the U.S. use standardized ISO forms, and almost every lender requires one of these when you take a mortgage.

Here’s a short snapshot of the key forms:

Form	Common Use
HO-3	Most common for owner-occupied homes
HO-5	Enhanced, comprehensive coverage
HO-6	Condos (“walls-in” coverage)
HO-7	Mobile/manufactured homes

When an agent casually says “homeowners insurance,” they’re almost always referring to an HO-3 Special Form.

Eligibility for Home Insurance

Anyone with an insurable interest in a property can purchase some type of home insurance, including:

Renters
Condo owners
Landlords
Owners of older or historic homes
Owners of mobile/manufactured homes
People with seasonal or secondary homes
Trusts and LLCs holding property

Eligibility for Homeowners Insurance (HO-3)

This one has much stricter criteria. You must:

Live in the home as your primary residence
Use a site-built or approved modular home
Ensure no major business activity occurs inside
Live in at least one unit (if it’s 1–4 units)

If you rent out your basement every weekend on Airbnb, you no longer qualify for a standard HO-3. You’d need a DP-3 landlord policy or a short-term rental endorsement.

The Six Standard Coverage Sections

All homeowners policies use the A–F coverage structure. Here’s a quick table showing how limits differ across common policy types:

Coverage	HO-3 (Homeowners)	DP-3 (Landlord)	HO-6 (Condo)
A – Dwelling	Replacement cost	Replacement cost	Usually $0 (covered by master policy)
B – Other Structures	10% of A	10% of A	0–10%
C – Personal Property	50–70% of A	0–50%	50–100% of A
D – Loss of Use	20–30% of A	0 or fair rental value	40% of C
E – Liability	$100k–$1M	$100k–$1M	$100k–$1M
F – Medical Payments	$1k–$5k	$1k–$5k	$1k–$5k

Example You Can Relate To

Let’s say you and I own a $400,000 home:

HO-3: Dwelling $400k, Contents $240k, Loss of Use $80k
DP-3: Dwelling $400k, Contents $0, Loss of Use only as lost rent

If a fire forces us to leave:

HO-3 pays hotel, food, and living costs
DP-3 pays only lost rent (and only if rented out)

This is why choosing the right form matters.

Named Perils

Policies like HO-2, HO-4, HO-8, and DP-1 list specific covered risks (fire, hail, vandalism, etc.). Anything not listed isn’t covered.

Open Perils

More comprehensive policies—HO-3, HO-5, and DP-3—cover any sudden and accidental loss unless excluded. Typical exclusions are:

Earthquake
Flood
War
Wear and tear
Mold
Pests
Intentional damage

Many people assume all home insurance has open-perils protection. It doesn’t.

Renters Insurance (HO-4)

Even though renters insurance falls under “home insurance,” it doesn’t cover the dwelling. It protects:

Your personal property
Your liability
Sometimes additional living expenses

Most people pay about $15–$30/month for $30k contents and $100k liability.

Condo Insurance (HO-6)

You and I would use this if we own a condo. It covers:

Interior walls
Upgrades
Personal belongings
Loss assessments (e.g., $10k shared deductible)

Mobile Home Insurance (HO-7)

It mirrors HO-3 but is designed for manufactured homes and their unique risks.

Factors That Raise or Lower Costs

Occupancy (landlord policies cost 25%–50% more)
Credit history
Claims record
Deductibles
Age of roof, HVAC, plumbing
Use of short-term rentals
Reconstruction cost in your ZIP code

Average U.S. Premiums (May Differ)

HO-3: $1,400/year
HO-4: $180/year
DP-3: $1,900/year
HO-6: $450/year

Short-term rentals can void HO-3 coverage if not disclosed.

Homeowners (HO-3)

You file, adjuster inspects, and you get:

Replacement cost for damage
Additional living expenses

Landlord (DP-3)

You file, but payouts differ:

Structure repairs go to you
Lost rent is covered only with a signed lease
Tenants must use their own renters insurance

Renters (HO-4)

You file online and usually receive:

Actual cash value (unless you bought replacement cost)
No ALE unless added

Flood is never included—you need NFIP or private flood insurance
Jewelry has limits ($1,500–$2,500) unless scheduled
Landlord insurance never covers tenant belongings
HO-3 only protects small business items up to $2,500

Simple Decision Guide

Renting? → HO-4
Own a condo? → HO-6
Own a mobile home? → HO-7
Own a home you live in? → HO-3 or HO-5
Own a home you rent out? → DP-1 or DP-3

If you’re in a flood- or earthquake-prone area, you’ll need additional coverage.

Case 1: Airbnb Fire Loss

A Denver homeowner’s HO-3 claim was denied because she rented her basement for 90 nights/year. She later switched to DP-3 + home-sharing endorsement.

Case 2: Condo Assessment Charges

A pipe burst caused a $50k deductible for the building. Condo owners with loss-assessment coverage paid nothing; those without paid out of pocket.

Case 3: Stolen Laptop

A renter received only $800 for a depreciated MacBook until she upgraded to replacement-cost coverage.

Home insurance is the big umbrella. Homeowners insurance is one specific type under that umbrella, meant only for people who own and live in their home.

When we choose between them, we need to think about:

How the home is used
Who lives in it
Whether we need dwelling, contents, or liability coverage
Whether we want named or open perils

Once you and I match the policy to our living situation, we can avoid gaps, denied claims, and unnecessary premiums.

Home Insurance vs. Homeowners Insurance: What’s the Real Difference?