Which form provides open-peril coverage for the dwelling and open-peril for other structures?

Which form provides open-peril coverage for the dwelling and open-peril for other structures?

• A. HO-1
• B. HO-2
• C. HO-3 Special Form
• D. HO-4

Answer: (C)

Open-peril versus named-peril coverage defines how much risk is covered for different parts of a homeowners policy. Open-peril means “everything is covered unless it’s specifically excluded,” while named-peril means only the listed perils are covered. The HO-3 Special Form provides open-peril coverage for the dwelling and for other structures. That means the physical structure of the home and any separate buildings on the insured property are covered for all risks of physical loss unless a stated exclusion applies. Personal property (the contents) is covered on a named-peril basis, which is why HO-3 is described as open-peril for the dwelling and open-peril for other structures, but not for contents. The other forms typically provide named-peril coverage for these parts, or mix coverage differently, so HO-3 best matches the described coverage.

Open-peril versus named-peril coverage defines how much risk is covered for different parts of a homeowners policy. Open-peril means “everything is covered unless it’s specifically excluded,” while named-peril means only the listed perils are covered.

The HO-3 Special Form provides open-peril coverage for the dwelling and for other structures. That means the physical structure of the home and any separate buildings on the insured property are covered for all risks of physical loss unless a stated exclusion applies. Personal property (the contents) is covered on a named-peril basis, which is why HO-3 is described as open-peril for the dwelling and open-peril for other structures, but not for contents. The other forms typically provide named-peril coverage for these parts, or mix coverage differently, so HO-3 best matches the described coverage.