Under HO-3, dwelling and other structures are covered on what basis?

• A. Personal property
• B. Open peril
• C. Liability
• D. Medical payments

Answer: (B)

In an HO-3 policy, the dwelling and other structures are insured on an open-peril basis, meaning coverage applies to nearly every risk unless the policy specifically excludes it. This gives broad protection for the home itself. By contrast, personal property is covered on a named-peril basis, so only the perils listed in the policy apply to your belongings. A practical takeaway: damage to the dwelling from most causes is covered unless there's an explicit exclusion, while your personal property requires either listed perils or an endorsement to gain broader coverage.