The HO-3 policy is a type of homeowners insurance that provides coverage for a home and its contents. It typically protects against risks like fire, theft, and vandalism, while also covering personal liability in case someone is injured on the property. This policy is designed for single-family homes and is one of the most common types of homeowners insurance. Unlike some other policies, the HO-3 uses an "open perils" approach for the structure, meaning it covers all risks except those specifically excluded. For personal belongings, it usually follows a "named perils" approach, covering only specific risks listed in the policy.