Insuring Personal Residential Property
The forms
HO-2 broad form, HO-3 special form, HO-5 comprehensive, HO-4 tenants, HO-6 condo, HO-8 modified for older homes. HO-3 is the most tested: open perils on the dwelling, named perils on personal property.
Coverages A through F
A dwelling, B other structures, C personal property, D loss of use, E personal liability, F medical payments to others. Special limits apply to money, securities, jewelry and watches for theft, silverware, firearms, and business property in the home. These are sublimits, not the full Coverage C limit, and are the most common trap.
Conditions
Replacement cost on the dwelling requires insurance to at least 80% of replacement cost; below that a penalty applies to partial losses. Personal property replacement cost is an endorsement, not automatic. The deductible applies per occurrence, and many states require separate percentage hurricane or windstorm deductibles based on Coverage A.
What is not covered
Flood, earthquake, and earth movement require separate policies or endorsements. Ordinance or law is limited. Repeated seepage and wear and tear are excluded.
Worked example: a tenant with an HO-4 owns $40,000 of personal property, and a burst pipe ruins $12,000 of furniture. The HO-4 pays the personal property loss; the landlord's policy covers the building but not the tenant's belongings. Watch for questions that assume the landlord's policy protects the renter.