HO-3 – Special Form
Definition:
The most common homeowners insurance policy, providing open-perils coverage for the dwelling and named perils for personal property.
Explanation:
HO-3 protects the home against all risks except exclusions, while belongings are insured only for listed perils. It balances affordability with strong protection.
Example:
If your home is damaged by a sudden roof leak, HO-3 covers it unless water damage is specifically excluded.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.