South Carolina Personal Lines Practice Exam

What is the name for a HO-8 Form?

1. Modified Form

2. Comprehensive Form

3. Special Form

4. Basic Form

The correct answer is: Modified Form

The HO-8 Form is known as the Modified Form, and it is specifically designed for insuring older homes that do not meet the requirements for standard homeowners insurance. This form provides basic coverage and is often utilized when market value rather than replacement cost is a more relevant measure for determining the insurance amount. In the context of older homes, traditional replacement value coverage may not adequately address the unique aspects of these properties, which might include unique construction materials or architectural features that don't easily align with the market's modern standards. The Modified Form allows for more flexibility and typically covers the dwelling at actual cash value rather than replacement cost, making it a suitable option for homeowners with such properties. The other options relate to different homeowners’ insurance forms. The Comprehensive Form typically refers to a policy that offers broad coverage, the Special Form includes more extensive coverage often for newer homes, and the Basic Form provides minimal coverage. These are distinct from the Modified Form in terms of coverage scope and applicability, particularly to older homes.