Property Insurance FundamentalsQuestion 142 of 474
Under the HO-3 Special Form, how is Coverage C (personal property) typically written?
a.Subject only to the comprehensive earthquake schedule
b.On a guaranteed replacement cost basis with no exclusions
c.On a named peril basis using the broad form peril list
d.Open peril, same as the dwelling under Coverage A
Explanation
The HO-3 is the most common homeowners form in California precisely because it gives BROAD open-peril coverage on the dwelling (Coverage A) and other structures (B), while still using NAMED PERIL coverage on personal property (Coverage C). To extend open-peril coverage to personal property, the insured can upgrade to the HO-5 Comprehensive Form.
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Related questions on this topic
- Insurance Code §2070 governs the form of fire policies written on California property. Which statement describes what it requires?
- All of the following are classic 'basic form' perils EXCEPT:
- An insured and her insurer cannot agree on the amount of a fire loss, and one of them makes a written demand for appraisal. Under the appraisal clause of California's standard form fire policy (§2071), what happens next?
- A California homeowner asks whether his standard HO-3 policy covers damage caused by an earthquake. The CORRECT answer is:
- A homeowner's basement is destroyed when a nearby river overflows after several days of rain. The HO-3 policy will:
- Personal property such as jewelry, firearms, silverware, and currency is typically subject to:
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