Homeowners questions are some of the most common on a P&C exam, and they almost always come down to which form covers which property against which perils. Facts below are from the standard ISO forms.
Form by form
- HO-2 Broad Form: the dwelling and other structures on a named-perils basis (ISO HO 00 02).
- HO-3 Special Form: dwelling (Coverage A) and other structures (Coverage B) on open perils, subject to exclusions; personal property (Coverage C) on named perils only (ISO HO 00 03).
- HO-4 Contents: for tenants. It starts at Coverage C, with loss of use and liability, and has no dwelling coverage. Tenant-paid improvements are covered up to 10 percent of Coverage C (ISO HO 00 04).
- HO-5 Comprehensive: like the HO-3, but personal property is also on open perils (ISO HO 00 05).
- HO-6 Unit-Owners: Coverage A insures the alterations, appliances, fixtures and improvements within the unit. Standard loss assessment coverage is $1,000 (ISO HO 00 06).
- HO-8 Modified Coverage: for older homes. If the insured does not repair or replace, payment is the least of the limit, market value or actual cash value, and theft is limited to on-premises loss up to $1,000 (ISO HO 00 08).
HO-3 details the exam likes
- Coverage B other structures are set apart by clear space, are limited to 10 percent of Coverage A, and do not reduce Coverage A (ISO HO 00 03, Coverage B).
- Ordinance or law adds up to 10 percent of Coverage A for the increased cost of complying with building laws (Additional Coverage E.11).
- Money, bank notes, coins and similar items are limited to $200 under Coverage C (Coverage C.3.a).
Practice property and casualty insurance questions for your state, with explanations and timed mock exams.