What is an HO 3?

Homeowners Policy Special Form 3 (HO 3) — part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio, the HO 3 insures the described owner-occupied dwelling, private structures in connection with the dwelling, unscheduled personal property on and away from the premises, and loss of use.

What is the difference between HO2 and HO3?

With HO2 coverage, your dwelling coverage is written as named perils which means that your home structure is only covered by perils included in your policy. On the flipside, with HO3 coverage, your dwelling coverage is written as open perils which means that unless a peril is specifically excluded, it is covered. Aug 6, 2020

What is the difference between homeowners insurance and property insurance?

Homeowners insurance covers liability, which you face if a visitor suffers injury or property damage while on your property. Unless you purchase a separate liability policy or add this coverage to your policy with a rider for a separate premium, standard property dwelling insurance does not come with this protection.

What is considered incidental business?

Typically, it’s when a business is functioning in a home that is mainly used as a place of residence and without any other business activities being conducted on the same premises. Clear guidelines detail the types of incidental businesses allowed to be conducted on-premises.

What is a business pursuit?

Business Pursuits means any full-time, part-time or occasional activity of any kind undertaken for financial gain, and includes a trade, profession or occupation.

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