What is the basic protection type provided by HO Forms 2?

• A. All-peril coverage for structures
• B. Basic, named-peril protection
• C. Renter's coverage only
• D. Comprehensive coverage for contents only

Answer: (B)

HO Forms, which stands for Homeowners Insurance Forms, outline the specifics of coverage provided under different homeowners insurance policies. HO Form 2, known as the Broad Form, offers coverage for structures and personal property but does so on a named-peril basis for personal property. This means that the policy only covers specific risks that are explicitly listed in the document.

The broad form typically covers the dwelling on a more comprehensive basis than the basic form but does not go as far as comprehensive coverage which would cover all perils unless specifically excluded. Therefore, choosing the named-peril approach under HO Form 2 signifies that if personal property is damaged, it is only covered for those perils that are named in the policy, such as fire, theft, or vandalism.

This structure of coverage is tailored to provide clarity on what hazards are covered, making it easier for policyholders to understand their protection against specific risks.