What type of coverage does the HO-3 homeowners policy provide for dwelling and personal property?

The HO-3 homeowners policy is designed to provide comprehensive coverage, and the correct answer states that it offers open peril coverage for the dwelling and broad form coverage for personal property.

Open peril coverage means that the policy covers all causes of loss except for those specifically excluded. This is beneficial for homeowners because it provides extensive protection for the structure of the home against a wide range of risks.

In the case of personal property, broad form coverage is typically defined to cover personal belongings against a specific list of perils, which can include risks such as theft, fire, and vandalism, among others. This means that while personal property is protected, it is not covered against as many risks as the dwelling itself.

Thus, while the HO-3 policy covers the dwelling comprehensively through open perils, personal property has more limited coverage, which reflects the combination of these two coverage types effectively. This distinction underscores the importance of understanding the levels of coverage associated with different parts of a homeowners policy.