Which statement best describes the HO-8 form?

Which statement best describes the HO-8 form?

• A. HO-8 is a modified homeowners form
• B. HO-8 is the most comprehensive form
• C. HO-8 excludes personal property
• D. HO-8 is only for rental properties

Answer: (A)

HO-8 is a modified homeowners form designed for older homes or homes with unique construction where insuring on a replacement-cost basis would be impractical or too costly. Because of this, the policy pays losses on an actual cash value basis for the dwelling and for personal property, rather than replacement cost. It also uses a named-perils structure rather than the broad, open-perils approach found in more comprehensive forms. This makes HO-8 less expansive than the standard HO-3 form. It’s typically intended for owner-occupied older homes, not rental properties.

HO-8 is a modified homeowners form designed for older homes or homes with unique construction where insuring on a replacement-cost basis would be impractical or too costly. Because of this, the policy pays losses on an actual cash value basis for the dwelling and for personal property, rather than replacement cost. It also uses a named-perils structure rather than the broad, open-perils approach found in more comprehensive forms. This makes HO-8 less expansive than the standard HO-3 form. It’s typically intended for owner-occupied older homes, not rental properties.