An HO-3 policy provides what kind of peril coverage on the dwelling (Coverage A) and on personal property (Coverage C)?
a.Named perils on the dwelling and open perils on personal property
b.Open perils on both the dwelling and personal property
c.Named perils on both the dwelling and personal property
d.Open perils on the dwelling and named perils on personal property
Explanation
The HO-3 Special Form is the most widely sold homeowners policy precisely because it gives the dwelling and other structures open-peril ("all-risk") protection, meaning any cause of loss is covered unless specifically excluded, while personal property is written on a named-peril basis covering only the 16 listed perils such as fire, lightning, windstorm, theft, and vandalism.
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Related questions on this topic
- A tenant rents an apartment and wants to insure her own belongings and protect herself against liability claims by guests. Which homeowners form is designed for her?
- Which homeowners form provides open-peril ("all-risk") coverage on BOTH the dwelling AND personal property?
- Which homeowners form is intended for a condominium unit owner and includes a loss-assessment coverage for assessments levied by the condo association?
- An owner of a 110-year-old Victorian in San Francisco cannot find a standard HO-3 policy because the replacement cost exceeds the market value by a wide margin. Which homeowners form is designed for older homes and settles dwelling losses on an ACV (actual cash value) basis?
- On a standard HO-3 policy, Coverage B (Other Structures) is typically provided as an automatic additional amount equal to what percentage of Coverage A (Dwelling)?
- On a standard owner-occupied HO-3, what is the customary built-in limit for Coverage C (Personal Property) as a percentage of Coverage A?
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