Commercial and Residential Property Coverages
Residential forms
HO-2 is broad named peril on both dwelling and contents. HO-3 is open peril on the dwelling and other structures but named peril on personal property. HO-5 is open peril on both. HO-4 covers a tenant's contents and liability; HO-6 covers a condo unit's interior, improvements, and loss assessment; HO-8 is for older homes using functional replacement cost. Coverages are A dwelling, B other structures, C personal property, D loss of use, E personal liability, and F medical payments. Special limits (cash, theft of jewelry, theft of silverware, theft of firearms) are sublimits that often apply only to theft.
Commercial property
The building and personal property coverage form insures buildings, business personal property, and personal property of others. Causes-of-loss forms are basic, broad, and special. Add business income and extra expense, equipment breakdown, builders risk, and inland marine for property in transit or at other locations. Difference-in-conditions fills gaps between forms.
Traps
- HO-3's "special" treatment does not extend to contents.
- Off-premises personal property (typically 10%) and newly acquired property carry limits.
- Business income requires a period of restoration and often a waiting period.
- Flood and earthquake are almost always excluded and must be purchased separately.
Rule of thumb
Match the form to the occupancy first (owner, renter, condo, older home), then the peril basis (named vs special), then the valuation method. Example: a tenant with $20,000 of furniture needs HO-4; the building is the landlord's exposure, not the tenant's.