Under HO-3, dwelling and other structures are covered on what basis?

Under HO-3, dwelling and other structures are covered on what basis?

• A. Personal property
• B. Open peril
• C. Liability
• D. Medical payments

Answer: (B)

In an HO-3 policy, the dwelling and other structures are insured on an open-peril basis, meaning coverage applies to nearly every risk unless the policy specifically excludes it. This gives broad protection for the home itself. By contrast, personal property is covered on a named-peril basis, so only the perils listed in the policy apply to your belongings. A practical takeaway: damage to the dwelling from most causes is covered unless there's an explicit exclusion, while your personal property requires either listed perils or an endorsement to gain broader coverage.

In an HO-3 policy, the dwelling and other structures are insured on an open-peril basis, meaning coverage applies to nearly every risk unless the policy specifically excludes it. This gives broad protection for the home itself. By contrast, personal property is covered on a named-peril basis, so only the perils listed in the policy apply to your belongings. A practical takeaway: damage to the dwelling from most causes is covered unless there's an explicit exclusion, while your personal property requires either listed perils or an endorsement to gain broader coverage.