What type of coverage is typically included in the HO-5 homeowners policy?

The HO-5 homeowners policy is characterized by its open perils coverage. This means that the policy provides protection against all risks of direct physical loss or damage to the dwelling and personal property, except for those specifically excluded in the policy. The broad nature of open perils coverage offers homeowners a high level of protection, as it does not limit coverage to specific named perils, which are only defined risks such as fire, theft, or vandalism.

In contrast, named perils policies only cover specific risks that are explicitly mentioned in the policy, which limits the scope of protection. Exclusions refer to specific situations or events for which the policy does not provide coverage, and modified perils could imply a mixture of named and broader risks but would not align fully with the comprehensive nature of the HO-5. The open perils coverage in an HO-5 policy is designed to give homeowners peace of mind, knowing that they have protection against a wide array of potential risks.