Texas General Lines — Property and CasualtyPersonal LinesMedium
A client is moving into a newly constructed home and wants the most comprehensive homeowners insurance available for both their dwelling and personal property. Which Homeowners policy form would best meet their needs?
- AHO-3 Special Form
- BHO-2 Broad Form
- CHO-5 Comprehensive Form
- DHO-4 Contents Broad Form
Show answer & explanationAnswer & explanation
Correct answer: C. HO-5 Comprehensive Form
The HO-5 Comprehensive Form provides the broadest coverage available for both the dwelling and personal property on an 'open perils' basis, meaning all perils are covered unless specifically excluded. This offers the most extensive protection for a new home and its contents.
Why the other options are wrong
- A. HO-3 provides 'open perils' for the dwelling but 'named perils' for personal property, making it less comprehensive than HO-5 for personal property.
- B. HO-2 provides 'named perils' coverage for both dwelling and personal property, which is less comprehensive than HO-5.
- D. HO-4 is designed for renters and only covers personal property on a 'named perils' basis, not the dwelling.
HO-5 Comprehensive Form
The HO-5 Comprehensive Form is the most extensive homeowners policy, providing 'open perils' coverage for both the dwelling (Coverage A) and personal property (Coverage C).
- Dwelling and personal property are covered against all risks unless specifically excluded.
- The burden of proof for an exclusion rests with the insurer.
- Often includes higher special limits of liability for certain items compared to other forms.
Memory trick: HO forms increase coverage from 'B'asic to 'C'omprehensive.