A standard homeowners policy in the USA bundles several coverages into one. Here is what it covers, what it costs in 2026, and what it does not cover. This is a general-education guide, not financial advice.

What a standard HO-3 policy covers

A standard HO-3 policy bundles six coverages:

  • A — Dwelling: the house itself
  • B — Other structures: garage, shed, fence
  • C — Personal property: furniture, clothes, electronics
  • D — Loss of use: extra living costs if you cannot stay in the home
  • E — Personal liability: if someone is hurt on your property or you damage someone else’s property
  • F — Medical payments to others: small medical bills for guests hurt on your property

What it costs in 2026

Average cost in 2026 is about $2,400–$2,600 a year (roughly $200 a month) for $300,000 of dwelling coverage — Bankrate puts it at $2,424; NerdWallet at about $2,490 for $400,000 of cover; Insurify projects up to $3,057. State it as a range: the price varies sharply by state, and premiums are rising with construction costs and severe weather.

What it does NOT cover

  • Floods — needs a separate flood policy
  • Earthquakes — needs a separate earthquake policy
  • Wear and tear, pest damage, and sewer backup are usually excluded too

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