Homeowners Policy
The forms and their structure
HO-2 (broad) is named peril on both property sections; HO-3 (special) is open peril on the dwelling and other structures but named peril on personal property; HO-5 (comprehensive) is open peril throughout. HO-4 (renters) covers personal property, loss of use, and liability with no building coverage; HO-6 (condo/co-op) covers contents, building items, and loss assessment; HO-8 (modified) serves older or higher-risk homes with functional replacement cost and reduced perils. Section I: A Dwelling, B Other Structures, C Personal Property, D Loss of Use. Section II: E Personal Liability, F Medical Payments to Others.
Sub-limits, not exclusions
Base-form special limits include money at $200, securities at $1,500, theft of jewelry and furs at $1,500, theft of firearms at $2,500, theft of silverware at $2,500, business property at $2,500 on premises and $500 off premises, and electronic accessories in vehicles at $1,500.
Traps
Flood and earth movement are excluded; water backup needs an endorsement. Ordinance or law is limited (typically 10% of Coverage A). Liability excludes business pursuits, use of motor vehicles, and intentional acts. Medical Payments to Others is no-fault but does not apply to the named insured or regular residents. Coverage D pays additional living expense and fair rental value.
Worked example
Coverage A loss settlement requires at least 80% of replacement cost to collect full replacement cost. A dwelling with $400,000 replacement cost needs $320,000 of Coverage A. If the insured carries $240,000 and suffers a $100,000 loss, payment is the greater of ACV or ($240,000 ÷ $320,000) × $100,000 = $75,000, then the deductible applies.