Which HO form is the most limited coverage?

Which HO form is the most limited coverage?

• A. HO-8 (modified homeowners)
• B. HO-2 (broad form)
• C. HO-3 (comprehensive form)
• D. HO-4 (tenant's form)

Answer: (A)

The most limited coverage comes from the modified homeowners form. This form is designed for older homes and uses actual cash value to settle losses for the dwelling, other structures, and personal property, rather than replacement cost. It also covers a narrower set of perils compared with the other homeowners forms, so overall protection is smaller. In contrast, the broad form and comprehensive form provide broader perils coverage and often replacement-cost settlements, while the tenant’s form covers only a renter’s personal property and liability, not the dwelling itself.

The most limited coverage comes from the modified homeowners form. This form is designed for older homes and uses actual cash value to settle losses for the dwelling, other structures, and personal property, rather than replacement cost. It also covers a narrower set of perils compared with the other homeowners forms, so overall protection is smaller. In contrast, the broad form and comprehensive form provide broader perils coverage and often replacement-cost settlements, while the tenant’s form covers only a renter’s personal property and liability, not the dwelling itself.