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Insurance · Homeowners Policies

Which HO form is most commonly sold to homeowners?

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

HO-3 (Special Form) — open perils on the dwelling, named perils on contents

  1. A HO-3 (Special Form) — open perils on the dwelling, named perils on contents
  2. B HO-8 (Modified Coverage Form)
  3. C HO-4 (Renters Form)
  4. D HO-1 (Basic Form)

Why this is the answer

HO-3 is the most widely sold homeowners policy because it provides the broadest coverage at a moderate premium. DWELLING (Coverage A): open perils — all causes of loss except those specifically excluded. PERSONAL PROPERTY (Coverage C): named perils — only the listed causes (fire, theft, wind, etc.). This asymmetry is the most tested HO-3 feature. HO-1 is rarely sold today (too limited). HO-2 (Broad Form) covers both dwelling and contents on named perils. HO-5 is the most comprehensive (open perils on both). HO-3 balances coverage and cost for the typical homeowner.
Source: Property Insurance Exam, HO-3 Form

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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.

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