What does HO-2 stand for in property insurance terms?

HO-2 refers to the Broad Form in property insurance terminology. This type of homeowners insurance policy provides coverage for a wide range of named perils. Specifically, it offers protection against perils like fire, lightning, windstorm, hail, explosion, theft, vandalism, and several others. The Broad Form is designed to cover both the dwelling and the personal property of the insured, but it only covers the perils explicitly listed in the policy.

The distinction of "Broad Form" as HO-2 is essential for homeowners seeking comprehensive coverage since it extends beyond the minimal coverage of basic forms. Policies like HO-1, which is often considered a Basic Form, offer very limited coverage, typically only including a few perils. In contrast, the Comprehensive Form (often HO-5) offers even broader coverage, but that would not apply to HO-2. The Modified Form does not represent a standard classification within the HO policy types as widely recognized.

Therefore, understanding that HO-2 stands for Broad Form helps clarify the types of coverage available for policyholders in North Carolina and assists agents in advising clients on their options appropriately.