South Carolina Personal Lines Practice Exam

Which forms generally provide the broadest coverage for homeowners?

1. HO-1 Forms

2. HO-2 Forms

3. HO-3 Forms

4. HO-5 Forms

The correct answer is: HO-5 Forms

The HO-5 form provides the broadest coverage for homeowners because it offers an open-perils approach for the structure and personal property. This means that it covers all risks of physical loss or damage to the home and its contents, except for exclusions specifically listed in the policy. This is a significant advantage because it typically includes a wider range of perils compared to other forms, such as the HO-1, HO-2, and HO-3. The HO-1 form is very basic and only covers named perils, which limits the protection significantly. The HO-2 form also covers named perils but still does not provide as comprehensive a scope as the HO-5. The HO-3 form offers broadened coverage compared to the HO-1 and HO-2 forms, as it uses an open-perils approach for the dwelling while applying named perils for personal property, but it does not cover as many risks for personal belongings as the HO-5 does. Thus, the HO-5 stands out as the most comprehensive option, making it the preferred choice for homeowners seeking maximum protection.