Dwelling and Homeowners Coverage Forms
Domain 3 tests the dwelling and homeowners forms: which form covers what, which perils apply, and which internal limits reduce a claim. Expect questions comparing HO-3 and HO-5, or applying a special limit to stolen jewelry.
Forms and coverages
- HO-3 covers the dwelling on an open-peril basis and personal property on a named-peril basis.
- HO-5 covers both dwelling and personal property on an open-peril basis.
- HO-2 is named-peril for both; HO-4 renters; HO-6 condo; HO-8 older homes with functional replacement.
- Coverages: A dwelling, B other structures, C personal property, D loss of use, E liability, F medical payments.
- DP-1, DP-2, DP-3 are dwelling forms; DP-3 is open peril on the dwelling.
Worked example
A thief steals a $5,000 ring. The HO-3 has a $1,000 deductible and the standard $1,500 theft limit for jewelry. The claim is capped at $1,500, then the deductible applies, leaving $500-unless the ring was scheduled on an endorsement, in which case the scheduled limit and often a lower or no deductible apply. The reasoning: special limits are sublimits inside Coverage C, not separate coverage.
Traps
Do not use the Coverage C limit for jewelry theft without checking the special limit. Do not assume HO-3 is open peril on personal property. Do not overlook off-premises limits, business property limits, or the vacancy condition. Do not confuse loss of use with lost rent.