West Virginia Property and Casualty Licensing Practice Exam

Which of the following refers to the special form of policy under homeowners insurance?

1. HO1

2. HO2

3. HO3

4. HO4

The correct answer is: HO3

The special form of policy under homeowners insurance is often referred to as the HO3 policy. This policy provides broad coverage for the structure of the home and personal property within it. Specifically, the HO3 form covers all risks to the dwelling except for those specifically excluded in the policy. This means that unless a peril is explicitly mentioned as an exclusion, it is generally covered, offering a high level of protection for homeowners. The other forms, such as HO1, HO2, and HO4, offer different levels of coverage. For instance, HO1 is a basic form that provides limited and named coverage, while HO2 provides broader coverage than HO1 but is still limited to named perils. HO4, also known as renters insurance, covers personal property but does not cover the dwelling itself. Therefore, the comprehensive nature of the HO3 policy makes it stand out as the special form under homeowners insurance.