HO-5 – Comprehensive Form
Definition:
A homeowners policy that provides open-perils coverage for both the dwelling and personal property.
Explanation:
HO-5 offers broader protection than HO-3 by covering all risks to contents unless excluded. It often has higher limits for valuable items.
Example:
If your laptop is accidentally damaged, HO-5 may cover it, while HO-3 would not unless a named peril applied.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.