What is the coverage type for personal property under HO-3?

The coverage for personal property under an HO-3 homeowners insurance policy is based on named peril. This means that personal property is only covered against specific risks that are explicitly listed in the policy. Common named perils might include fire, theft, vandalism, and certain types of water damage. Because of this structure, if a peril is not listed in the policy, the coverage will not apply, which clearly defines the scope of protection for personal belongings.

In contrast, open peril coverage, which is provided for the dwelling portion of an HO-3 policy, insures against all risks except those specifically excluded by the policy. The mention of comprehensive coverage often refers to broader insurance options, usually in an auto context rather than homeowners insurance, while broad form typically relates to other types of coverage that are not applicable to personal property under HO-3. Thus, recognizing that personal property is explicitly covered against a defined list of perils is crucial in understanding how HO-3 policies function for protecting personal belongings.