Which HO policy provides open peril coverage for structures?

The correct choice is based on the characteristics of the various homeowners insurance policies. The HO-3 policy, known as the "Special Form" policy, offers open peril coverage for the dwelling and other structures. This means that, unless specifically excluded, all risks of physical loss or damage to the property are covered. This provides a broader range of protection compared to named peril policies, which only cover risks explicitly listed in the policy.

In an HO-3 policy, the policyholder benefits from coverage for a wide array of potential perils, making it a more comprehensive option for homeowners who want strong protection for their property. Additionally, while personal property within the home is typically covered under named perils in an HO-3 policy, the structure itself enjoys the benefit of open peril coverage, reducing the risk of being underinsured against unexpected events.

In contrast, the other policy types have different scopes of coverage. For instance, the HO-2 policy provides named peril coverage for both structures and personal property, while the HO-4 is designed for renters and covers personal property only, and the HO-5 policy offers open peril coverage for both the dwelling and personal property, but is generally less common and more specialized. Understanding these distinctions helps clarify why the HO-