What is the best description of the special HO-3 homeowners insurance policy? (2024)

What is the best description of the special HO-3 homeowners insurance policy?

A homeowners insurance (HO-3) policy is a coverage plan that covers your home's structure, your personal belongings and liability in the event of damage or injury. Typically, an HO-3 policy will also cover additional living expenses and protection for other structures on your property.

What is the description of the special HO-3 homeowners insurance policy?

HO-3 homeowners insurance covers you for a variety of other expenses related to your home beyond your physical property. Common coverages include personal liability, loss of use and medical payments. The most important of these remaining features is personal liability coverage.

Which of these is the best description of the special HO-3?

HO-3 coverage — also known as a special form homeowners insurance policy — is an open peril policy that covers the physical structure of your home against all perils (a cause of loss) except for those specifically excluded listed on your policy.

What is an HO-3 policy intended for quizlet?

H03 policy provides protection for dwelling and other structures on an open peril basis, and personal property is covered only for broad perils. This modified coverage form is a unique homeowners fine. It is intended for use when replacement cost coverage is not practical.

Which of the following is covered in the unendorsed HO-3 homeowners form?

What type of coverage is provided by the HO-3 under the property removed provision?

Property Removed

We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed. This coverage does not change the limit of li- ability that applies to the property being re- moved.

What is the special form of homeowners insurance?

HO-3 (special form)

HO-3 policies offer more expansive coverage than HO-2s, meaning that your home's structure is safeguarded against all perils except for those specifically excluded (for example, earthquakes and floods) in your policy.

On which basis does an HO 3 policy provide coverage?

Usually, HO3 policies are written on an open-perils basis for your home and other structures (Coverages A & B). This means that if a peril isn't listed as an exclusion by the policy, your insurance company can pay for damages. Personal property protection on the other hand, is typically written on a named-perils basis.

What are the named perils on an HO 3 policy?

Named Perils

Weather events: lightning, windstorms, hailstorms, and named storms or hurricanes. Other events: explosions, falling objects, fire, smoke, or volcanic eruption. Acts committed by others: theft, vandalism, malicious mischief, riot, or civil commotion. Damage caused by vehicles: cars, aircraft, unmanned ...

What is the difference between HO 3 and HO-5?

An HO-3 insures the contents of your house only for specific problems named in the policy, such as fire and wind. An HO-5 policy insures your belongings against all causes of damage that aren't excluded. Another key difference: HO-5 policies automatically include replacement cost coverage—HO-3 policies might not.

Which situation is not covered for liability under an HO-3 policy?

The HO-3, on the other hand, is what is called an "open" perils policy. Everything is covered except what is specifically excluded. For example - earth movement, flood, nuclear hazard, and war are excluded.

What is the primary difference between an HO 2 and an HO-3 policy?

In an HO2 policy, only perils listed in the policy are covered. In an HO3 policy, all perils are covered except for the exclusions listed in the policy. An HO2 is often called a “broad form policy,” whereas an HO3 is often called a “special form policy.”

Which of the following perils are covered by HO-3 & HO 5 policies?

Some of the more common named perils that are covered by both HO-3 and HO-5 policies include the following: Lightning or fire. Hail or windstorm. Damage caused by aircraft.

What is covered under an unendorsed homeowners policy 3?

The HO3 policy for an unendorsed person includes all the aspects of the home structures and the personal belongings, which are heavy and are considerable. The homeowners' policy insures these aspects through different considerations for unendorsed owners....

What is covered by an unendorsed homeowners policy?

While an unendorsed homeowners policy will cover the value of basic belongings and the house itself from ordinary perils, an endorsed policy will cover any value that you stipulate against all forms of loss.

What is the water damage exclusion in the HO 3 policy eliminates coverage for losses caused by?

A water exclusion clause is a restriction in homeowners and renter's insurance policies that denies coverage for some water-related claims. Events that are likely to fall under a water exclusion clause include damage caused by flood, tsunamis, standing water, groundwater, and drain or sewage backups.

What area is not protected by most homeowners insurance?

What is the definition of named insured in the ho3 policy?

A named insured is a person who's covered outright under a renters or home insurance policy – that includes the policyholder and anyone else living with them related by blood, marriage, or adoption.

What are the three major parts of a homeowners policy?

Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.

What is the difference between special form and basic form?

Special Perils Coverage provides the most protection for your property. This type of coverage is very different than Basic and Broad Form coverage. Rather than providing protection for perils specifically identified on the policy, Special Form Coverage covers all perils UNLESS they are specifically excluded.

What is the difference between basic and special coverage?

Unlike Basic and Broad Form Coverage, Special Form policies cover any type of sudden and accidental loss unless it is specifically excluded, such as earthquakes, backup of sewers and drains, and equipment breakdown. Such protections can be added as options, something we frequently do.

What are 3 types of home insurance and which is common for homeowners?

HO-1: Basic form insurance only offers dwelling protection. HO-2: Broad form insurance extends beyond basic forms coverage to include personal belongings and additional perils. HO-3: The most common type of homeowners insurance, special form insurance includes dwelling, belonging, and liability coverage.

Which term correctly describes the perils covered by the dwelling coverage in an HO-3 homeowners policy?

"Open-peril" means that you are covered against all losses except those that are expressly excluded in your policy. It's important to note that your personal property is still covered on a "named-peril" basis with an HO-3 policy. This is the most common type of policy.

What is the difference between named perils and special perils?

Named peril means that the policy insures against the sources of loss (perils) that are listed in the policy such as fire, earthquake or hail. Special form coverage protects property against any source of loss that is not specifically excluded.

What is an HO-3 policy covers damage to the insured's residence building against open perils?

HO-3 offers comprehensive homeowners insurance, while HO-1 and HO-2 coverage offer limited protection from damages in your policy (named peril). HO-3 covers damages to your dwelling even those these perils aren't explicitly listed in your policy, with some exclusions (open peril).