What type of homeowners policy is known as the Special Form?

The Special Form homeowner's policy is known as HO-3. This policy is widely used because it provides comprehensive coverage for homeowners. Specifically, it protects the dwelling and other structures on an open-perils basis, meaning it covers all risks except for those specifically excluded in the policy. This broad coverage includes protection against a wide array of dangers, such as fire, theft, and certain types of water damage.

The HO-3 policy also covers personal property on a named-perils basis, which includes specific risks listed in the policy. This combination of open-perils coverage for the dwelling and named-perils coverage for personal belongings makes the HO-3 policy particularly desirable for homeowners seeking extensive protection for their property.

In contrast, the other types of homeowner policies mentioned offer different levels of coverage. For example, HO-2 provides named-perils coverage for both the dwelling and personal property, while HO-5 offers open-perils coverage for personal property but is typically used for higher-value homes. The HO-6 policy is designed for condominium owners and addresses specific insurance needs related to condo living. Each policy serves a unique purpose, but the HO-3 is distinguished as the Special Form due to its comprehensive nature.