Dwelling and Homeowners Policies
The forms
Homeowners forms: HO-2 (broad named perils), HO-3 (open perils on the dwelling, named perils on contents - the market standard), HO-5 (open perils on both), HO-4 (renters - contents and liability only), HO-6 (condo unit-owners), HO-8 (modified form for older homes using functional replacement cost). Dwelling policies (DP-1 basic, DP-2 broad, DP-3 special) insure the dwelling and, by endorsement, contents; they suit rentals and owner-occupied homes that don't qualify for an HO form.
Coverage structure
Section I: A Dwelling, B Other Structures, C Personal Property, D Loss of Use. Section II: E Personal Liability, F Medical Payments to Others. Standard relationships: B is typically 10% of A, C is 50% (HO-3) or 70% (HO-5) of A, D is 30% of A, and F pays reasonable medical expenses (commonly $1,000 per person) regardless of fault, excluding the insured's own household.
Special limits and conditions
The HO forms cap categories inside Coverage C: money (about $200), securities (about $1,500), theft of jewelry, watches, and furs (about $1,500), theft of firearms (about $2,500), and theft of silverware (about $2,500). A replacement-cost condition requires insurance to at least 80% of the dwelling's full replacement cost, or the dwelling loss is settled at ACV. Also know water backup, ordinance or law (commonly 10%), loss of use (fair rental value plus increased living costs), and liability exclusions for business, intentional acts, and use of motor vehicles and watercraft.
Traps
- HO-3 is open perils on the dwelling but named perils on contents - the most tested distinction.
- Falling below 80% RC triggers an ACV settlement, not coinsurance math.
Worked example: Dwelling RC $400,000, Coverage A $280,000 (70% - below 80%). A partial loss settles on ACV, less deductible.