South Carolina Personal Lines Practice Exam

What is the name for a HO-5 Form?

1. Comprehensive Form

2. Basic Form

3. Special Form

4. Standard Form

The correct answer is: Comprehensive Form

The HO-5 form is commonly referred to as the Comprehensive Form. This designation is significant because the HO-5 provides coverage on an open peril basis for both the dwelling and personal property. This means that it encompasses a broader range of risks compared to other forms, such as the HO-3, which only covers the dwelling on an open peril basis but personal property on a named peril basis. The term "Comprehensive" captures the extensive nature of the protections included in this form, making it suitable for policyholders who desire the most extensive coverage available for both their home and personal belongings. The primary benefit of the HO-5 is that it offers substantial peace of mind, knowing that coverage is more inclusive, protecting against unforeseen events that could lead to significant financial losses. In contrast, the other forms mentioned offer varying degrees of coverage, with Basic Form focusing on a limited list of specific risks, while Standard and Special Forms may not provide the same level of comprehensive coverage for personal property.