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Insurance · Homeowners Policies

What does a standard HO-3 (Special Form) homeowners policy cover?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

Open perils (all risks) on the dwelling and other structures; named perils on personal property; loss of use; personal liability; medical payments to others

  1. A Only liability
  2. B Named perils only
  3. C Only contents
  4. D Open perils (all risks) on the dwelling and other structures; named perils on personal property; loss of use; personal liability; medical payments to others

Why this is the answer

The HO-3 (Special Form) is the most common homeowners policy. Coverage structure: Coverage A (Dwelling) and B (Other Structures) are written on open-perils basis — covers all risks except those specifically excluded; Coverage C (Personal Property) is named-perils — covers only specifically listed risks; Coverage D (Loss of Use) pays additional living expenses if the home is uninhabitable; Coverage E (Personal Liability) and F (Medical Payments to Others) cover liability claims. Common exclusions: flood, earthquake, war, nuclear hazard, intentional acts, neglect, ordinance/law, power failure, mold (with limited exceptions). HO-5 (Comprehensive) extends open-perils to personal property as well; HO-1 (Basic) and HO-2 (Broad) are older forms with limited coverage; HO-4 is renters; HO-6 is condo unit owner; HO-8 is older homes.
Source: NAIC Model Outline, HO-3 Coverage

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About this topic: Homeowners Policies

Homeowners questions cover the HO forms (HO-2 through HO-8), the coverage sections (dwelling, other structures, personal property, loss of use, liability, medical payments), the perils, exclusions and endorsements. This is one of 21 Property Insurance questions on homeowners policies, each with a full explanation on a single study page.

New to this exam? Our Insurance exam guide explains the format, scoring, and how to prepare.

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