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 policy is known for its broad coverage and provides protection against all perils except for those specifically excluded in the policy. This includes coverage for the physical structure of the home and any attached structures, such as garages or sheds, against a wide array of potential risks, including fire, theft, and vandalism.

In contrast, other options like the HO-2 and HO-5 policies have different scopes; the HO-2 offers a more limited coverage based on named perils, meaning it only covers specific risks listed within the policy. The HO-5 policy, while also providing broad coverage for the dwelling, primarily focuses on higher-value homes and includes personal property coverage on an open-perils basis but may not be as commonly used or as versatile as the HO-3. The HO-6 is specifically designed for condominium owners, covering personal property and structural improvements but not the dwelling itself in the same way as the HO-3.

Overall, the HO-3 policy serves as a standard for extensive coverage on a risk-of-direct-physical loss basis, thus making it a go-to choice for many homeowners seeking comprehensive protection