Which HO form provides coverage for the dwelling and other structures on an open peril basis?

Which HO form provides coverage for the dwelling and other structures on an open peril basis?

• A. HO-2
• B. HO-3
• C. HO-4
• D. HO-5

Answer: (B)

The correct choice is the HO-3 form, which provides coverage for the dwelling and other structures on an open peril basis. This means that the policy covers all risks of physical loss or damage to the insured property, except for those specifically excluded in the policy. This open peril approach offers a more comprehensive level of protection compared to forms that provide named peril coverage, which only protects against specific risks listed in the policy. In contrast, the HO-2 form provides coverage on a named peril basis, meaning it only covers certain risks explicitly identified in the policy. The HO-4 form, commonly known as renters insurance, also does not cover the dwelling, as it is designed for tenants who do not own the property. Lastly, while the HO-5 form does provide open peril coverage for personal property, it is not as common as the HO-3 form for dwelling coverage. The HO-3 is the standard for homeowners seeking broad coverage for their homes, making it a popular choice among property owners.

The correct choice is the HO-3 form, which provides coverage for the dwelling and other structures on an open peril basis. This means that the policy covers all risks of physical loss or damage to the insured property, except for those specifically excluded in the policy. This open peril approach offers a more comprehensive level of protection compared to forms that provide named peril coverage, which only protects against specific risks listed in the policy.

In contrast, the HO-2 form provides coverage on a named peril basis, meaning it only covers certain risks explicitly identified in the policy. The HO-4 form, commonly known as renters insurance, also does not cover the dwelling, as it is designed for tenants who do not own the property. Lastly, while the HO-5 form does provide open peril coverage for personal property, it is not as common as the HO-3 form for dwelling coverage. The HO-3 is the standard for homeowners seeking broad coverage for their homes, making it a popular choice among property owners.