PLNew Yorkeasy
On a New York homeowners policy, the key coverage distinction between the HO-3 and HO-5 forms is that the HO-5:
AEliminates the New York § 3404 standard mortgage clause
Insures Coverage C (personal property) on an open-perils (special form) basis, whereas the HO-3 insures Coverage C on a named-perils basis
CProvides liability coverage only, with no property section
DLimits the policy to mobile and manufactured homes
Why this is the answer
In the New York market the HO-3 ('special form') insures Coverage A and B (dwelling and other structures) on an open-perils basis but limits Coverage C (personal property) to the 16 named perils. The HO-5 ('comprehensive form') extends open-perils treatment to Coverage C as well, providing the broadest property coverage commonly sold to homeowners in New York. Both forms must still comply with N.Y. Ins. Law § 3404's mandatory provisions.
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