What type of homeowners policy covers the dwelling and personal property on a named perils basis?

The HO-2 policy, also known as the Broad Form Homeowners Policy, provides coverage for the dwelling and personal property on a named perils basis. This means that the policy specifically lists the perils or risks covered, such as fire, theft, and vandalism. If a peril is not named in the policy, then coverage for that peril does not exist.

This type of policy is beneficial for homeowners because it offers a wider range of protection for personal property compared to more limited forms of homeowners insurance. The HO-2 policy is commonly chosen by those who want to ensure that their belongings are protected against various specific hazards while still covering the structure of their home.

In contrast, the HO-1 is much more limited and provides coverage for fewer perils, while the HO-3 is typically known for offering "open perils" coverage for the dwelling (though it still utilizes named perils coverage for personal property). The HO-4 policy, on the other hand, is designed for renters and does not cover the dwelling itself. Thus, the HO-2 is the correct choice as it specifically addresses both dwelling and personal property under named perils, providing targeted and comprehensive protection for the insured.