P&CTexaseasy
Under an HO-3 policy, how is personal property (contents) covered compared to the dwelling?
Contents are covered on a named-perils basis; the dwelling is covered on an open-perils basis
BBoth the dwelling and contents are covered on an open-perils basis
CContents are covered on an open-perils basis; the dwelling is covered on a named-perils basis
DBoth the dwelling and contents are covered on a named-perils basis
Why this is the answer
The HO-3 Special Form uses a split coverage structure: Coverage A (dwelling) and Coverage B (other structures) are insured on an open-perils (all-risk) basis — all causes of loss are covered unless specifically excluded. Coverage C (personal property / contents) is covered on a named-perils basis — the same 16-peril list used in the HO-2. To get open-perils coverage on contents as well, the insured needs an HO-5 Comprehensive policy or an endorsement adding open-perils contents coverage.
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