South Carolina Personal Lines Practice Exam

What is the name of the HO-2 form?

1. Standard Form

2. Special Form

3. Basic Form

4. Broad Form

The correct answer is: Broad Form

The HO-2 form is known as the Broad Form. This insurance policy provides coverage for a range of named perils, specifically designed for homeowners. It extends protection beyond the basic coverage, which typically includes risks like fire, theft, and vandalism, to encompass a broader array of potential damages to the structure and its contents. The Broad Form is particularly advantageous for homeowners as it covers personal property for the perils explicitly listed in the policy while providing a greater level of security compared to basic or standard forms. This form ensures that homeowners have more comprehensive protection against various unexpected events, making it a popular choice for many insurance buyers seeking adequate coverage on their property. Other forms mentioned have specific meanings: the Standard Form generally refers to a basic level of coverage, the Special Form typically refers to a more comprehensive coverage that includes open perils for the dwelling (HO-3), and the Basic Form usually encompasses a limited selection of perils. Thus, the correct terminology for the HO-2 form as Broad Form reflects its purpose and the extent of coverage it provides.