Which coverage specifically pertains to the personal property losses in an HO-3 policy?

In an HO-3 policy, coverage for personal property losses is primarily based on the named perils approach. This means that the policy specifically lists the types of risks or perils that are covered for personal property. For example, if personal property is damaged or lost due to fire, theft, or certain other specified incidents, it would be protected under the named perils coverage.

The specificity of named perils allows policyholders to clearly understand what is and isn't covered. This is crucial because if a type of loss occurs that is not listed in the policy, it will not be compensated. Named perils coverage applies to personal belongings within the home or on the premises and is a notable feature of HO-3 policies, designed to protect homeowners from certain specified risks.

In contrast, the other options represent different concepts. Open perils refers to coverage that protects against all risks except those specifically excluded, which is generally applied to the structure of the home rather than personal property. Replacement costs and actual cash value are methods of determining how much a claim will pay but do not directly pertain to the types of coverage within the HO-3 policy itself. Replacement cost refers to the cost to replace property without depreciation taken into account, while actual cash value considers depreciation