What type of events does an HO-2 policy typically cover?

An HO-2 policy, also known as a Broad Form Homeowners insurance policy, typically covers named perils. This means that it specifies certain risks that are covered under the policy, such as fire, theft, vandalism, and certain types of water damage.

The reasoning behind this type of coverage is that it provides homeowners with a broader range of protection compared to basic policies (like an HO-1 policy), but it is not as extensive as an all-risks policy (like an HO-3), which covers all perils except those specifically excluded. This focus on named perils helps homeowners understand exactly what types of damage or losses are eligible for reimbursement under the policy, offering clear guidance and expectations.

The other options do not accurately describe the coverage of an HO-2 policy. An all-risk coverage implies that it would protect against any event unless specifically excluded, which is not the case here. Specific events only would suggest even more limited coverage than named perils. Similarly, focusing solely on natural disasters does not capture the full range of covered situations under an HO-2 policy that may include a variety of other risks not limited to natural disasters.