South Carolina Personal Lines Practice Exam

What type of policy would cover personal property temporarily off-premises?

1. HO-2

2. HO-3

3. HO-5

4. HO-8

The correct answer is: HO-3

The correct answer is the HO-3 policy. The HO-3, also known as the Special Form policy, is designed to provide broad coverage for personal property both on and off the insured premises. It allows for personal belongings to maintain coverage even when temporarily away from the home, such as when traveling or staying at another location. This feature is particularly important for policyholders who may want to ensure that their valuable items, like electronics or jewelry, are protected outside their primary residence. The HO-2 and HO-5 policies also cover personal property, but the HO-2 is more limited in terms of perils covered, typically offering a named-peril coverage, while the HO-5 is more comprehensive, designed for higher value homes with a wider range of covered perils and better coverage for personal property, but may not have the same specific provisions for temporary off-premises coverage as the HO-3. The HO-8, which is designed for older homes, often uses more restrictive coverage options, making it less suitable for this scenario as well. Therefore, the HO-3 stands out for its inclusivity in covering personal property regardless of the location, aligning with the needs of those looking for off-premises protection.