The HO-3 homeowners policy provides what type of coverage?

The HO-3 homeowners policy is designed to offer comprehensive protection for homeowners. It provides open peril coverage for the dwelling, which means that the policy covers all risks of physical loss or damage to the home, except for those specifically excluded in the policy. This approach offers broad protection to the structure of the house itself.

In addition to this, the personal property within the home is covered under broad form coverage. This means that the policy covers a limited list of named perils, which are specifically delineated in the policy. Consequently, while the dwelling benefits from extensive open peril protection, the personal property is protected against a more restricted range of risks.

This combination of open peril coverage on the dwelling and broad form coverage on personal property is what makes the HO-3 policy a popular choice among homeowners, as it balances comprehensive protection for the home with specified coverage for personal belongings.