Policies are meant to pay for property damage if it was caused by a covered risk.
The types of properties and perils that are covered by homeowner’s insurance policies vary. Policies are typically categorized as either “named-perils,” which only cover specific sources of loss, or “open-perils,” which cover all losses unless excluded.
The special form, or HO-3, homeowners insurance policy is a common type that combines the features of both types.
Similar to other types of homeowners insurance, an HO-3 policy consists of two parts:
Section I includes coverages for your property (A, B, C, and D) and liabilities (E and F) in Section II.
The following is a description of each coverage as well as the general limits that the majority of insurers will provide:
