Which homeowners policy covers the dwelling and other structures on a risk-of-direct-physical loss basis?

The homeowners policy that covers the dwelling and other structures on a risk-of-direct-physical loss basis is the HO-3 policy. This type of policy, often referred to as a special form policy, provides extensive coverage for the insured dwelling and other structures on the property.

Specifically, the HO-3 policy covers all perils except those specifically excluded in the policy document. This means that unless a specific type of loss is mentioned as being excluded, it is generally covered, which offers a broad level of protection for homeowners. The coverage applies not only to the primary dwelling but also to other structures, such as fences, garages, and sheds, as long as they are on the premises.

This comprehensive scope of coverage is beneficial for homeowners because it mitigates the risk of significant financial loss due to unforeseen damages, such as those from fire, windstorm, or vandalism. In contrast, other policy forms like the HO-2 and HO-5 have different structures of coverage and may not offer the same breadth of risk coverage for the dwelling itself. The HO-6, for instance, is more tailored for condominium owners and typically includes coverage for personal property rather than direct coverage for the dwelling. Therefore, the HO-3 policy is widely favored for