What kind of coverage does the "Special form" of Homeowners Insurance (HO Forms 3) provide for structures?

• A. Named-peril coverage
• B. All-peril coverage
• C. Liability coverage
• D. Standard coverage

Answer: (B)

The "Special form" of Homeowners Insurance, specifically the HO Form 3, provides all-peril coverage for structures. This means that it covers a wide range of risks to the home and other structures on the property, except for those perils specifically excluded in the policy. All-peril coverage is comprehensive, offering protection against various types of damage, including those from fire, theft, vandalism, and more, making it a robust option for homeowners seeking peace of mind regarding their property.

This contrasts with named-peril coverage, which only covers specific risks that are explicitly listed in the policy. Liability coverage, on the other hand, pertains to legal responsibilities for injuries or damage to other individuals or their property, rather than damage to the policyholder's own structures. Standard coverage is a more generic term and does not accurately describe the breadth of protection provided under the Special form. This extensive protection is what distinguishes HO Form 3 and makes it a popular choice among homeowners.