Which statement correctly contrasts HO-3 and HO-5 coverage for dwelling and personal property?

• A. HO-3 covers both dwelling and personal property on open perils
• B. HO-3 covers dwelling on open perils and personal property on named perils
• C. HO-5 covers dwelling on open perils only
• D. HO-5 covers both dwelling and personal property on open perils

Answer: (B)

Understanding how perils are applied to dwelling versus personal property helps explain this contrast. In the HO-3 form, the dwelling is covered on open perils (all risks except exclusions), while personal property is covered on named perils (a specific list). The statement that HO-3 covers dwelling on open perils and personal property on named perils captures that difference directly. HO-5, on the other hand, provides open perils coverage for both dwelling and personal property, which is why it’s a broader form. So this option correctly contrasts the two forms by showing how HO-3 splits the property coverage between open and named perils, whereas HO-5 covers both parts on open perils. The other choices misstate the perils for HO-3 or HO-5 or don’t adequately highlight the contrast.