Homeowners Policy
Forms
HO-2 broad form, HO-3 special form (open peril on Coverages A and B, broad named perils on C), HO-5 comprehensive (open peril on both), HO-8 modified for older homes (functional replacement cost). HO-4 covers tenants, HO-6 covers condominium unit owners including building items and loss assessment, and HO-7 covers mobile homes.
Section I and Section II
Section I: A dwelling, B other structures (10% of A), C personal property (usually 50% of A), D loss of use (usually 30% of A). Section II: E personal liability and F medical payments to others, which pays regardless of fault but excludes the insured and regular household residents.
Special limits
Money $200; securities $1,500; theft of jewelry, watches, and furs $1,500; theft of firearms $2,500; silverware theft $2,500; business property $2,500 on premises and $500 off premises. These are sub-limits inside Coverage C, not extra insurance.
Loss settlement
Dwelling losses are paid at replacement cost when the insured carries at least 80% of replacement cost; personal property is ACV unless the replacement cost endorsement applies. The Section I deductible does not apply to Section II claims.
Traps
Ordinance or law is limited (commonly 10% of Coverage A), flood is excluded, mold is capped (often $10,000), and business pursuits and home-sharing are restricted by exclusions.
Worked example: a $300,000 home insured for $200,000 with a $40,000 partial loss. Required insurance is $240,000, so payment is ($200,000 ÷ $240,000) × $40,000 = $33,333, less the deductible.