South Carolina Personal Lines Practice Exam

Which HO Form includes coverage for mysterious disappearance?

1. HO-2

2. HO-4

3. HO-3

4. HO-5

The correct answer is: HO-5

The HO-5 form is a comprehensive homeowners insurance policy that provides coverage for a wide range of perils, including mysterious disappearance. This form is designed to offer broader protection than other standard homeowners forms, specifically covering personal property on an open peril basis. This means that it covers all risks of loss unless they are specifically excluded. Mysterious disappearance is typically not covered in policies that only cover specified perils, which makes the HO-5 unique in its modern and inclusive approach to personal property coverage. In contrast, the HO-2 and HO-3 forms provide named perils coverage for personal property, which means they only cover specific risks listed in the policy. The HO-4 form, which is tailored for renters, also has similar limitations regarding coverage for personal property and does not extend to providing comprehensive personal property coverage. Therefore, the HO-5 is the only form among the options that explicitly includes coverage for losses due to mysterious disappearance, making it the correct choice for this particular query.