HO-3 policy coverage on the dwelling is open peril.

HO-3 policy coverage on the dwelling is open peril.

• A. Named peril coverage on the dwelling
• B. Open peril coverage on the dwelling
• C. No coverage on the dwelling
• D. Only liability coverage on the dwelling

Answer: (B)

In the HO-3 form, the dwelling and other structures are insured on an open-peril (special form) basis. Open peril means the insurer covers direct physical losses to the dwelling from all causes except those specifically excluded in the policy. This is why the dwelling in an HO-3 is described as having open-peril coverage. It’s different from personal property, which is covered on a named-peril basis (only the perils listed in the policy). So the statement about open-peril coverage for the dwelling is correct, and it wouldn’t be accurate to say the dwelling is covered only for listed perils, excluded entirely, or covered only for liability.

In the HO-3 form, the dwelling and other structures are insured on an open-peril (special form) basis. Open peril means the insurer covers direct physical losses to the dwelling from all causes except those specifically excluded in the policy. This is why the dwelling in an HO-3 is described as having open-peril coverage. It’s different from personal property, which is covered on a named-peril basis (only the perils listed in the policy). So the statement about open-peril coverage for the dwelling is correct, and it wouldn’t be accurate to say the dwelling is covered only for listed perils, excluded entirely, or covered only for liability.