2.1 Homeowners Policy Forms (HO-2 to HO-8) & Perils
Compare dwelling and personal property coverage across HO-2, HO-3, HO-4, HO-5, HO-6, and HO-8 forms, emphasizing named vs open perils.
Key Blueprint Takeaways
- HO-3 covers the dwelling on an open-peril basis, but personal property on a named-peril basis.
- HO-5 provides comprehensive open-peril coverage for BOTH dwelling and personal property.
- HO-4 is renters/tenants insurance (contents only); HO-6 is condominium unit-owners insurance.
The ISO Homeowners program provides unified package coverage combining property protection (Section I: Coverages A, B, C, D) and liability protection (Section II: Coverages E, F).
The flagship HO-3 (Special Form) protects the dwelling and other structures against all accidental direct physical losses except those specifically excluded (flood, earth movement, wear and tear). Personal property, however, is insured only against 16 named broad perils. Candidates requiring open-perils protection for luxury contents must purchase an HO-5.
A homeowner's expensive Persian rug is accidentally ruined when a guest spills permanent dye during a party. The homeowner has an unendorsed HO-3 policy. The neighbor across the street experiences the exact same accident with an unendorsed HO-5 policy. How will the respective insurance companies respond to these personal property claims?