Which type of coverage is typically included in an HO-3 policy for personal property?

An HO-3 policy is known for offering comprehensive coverage options for homeowners. Specifically, it includes "all risk coverage" for personal property, meaning that it covers losses from a wide range of perils unless specifically excluded in the policy.

This broad coverage is one of the key features that makes the HO-3 policy a popular choice. It protects personal belongings against numerous potential risks, such as theft, fire, and damage from various causes.

In contrast, the other types of coverage mentioned, such as named perils coverage, restrict the protection to only those specific risks that are explicitly listed. Limited perils coverage would also imply a narrower scope of risks provided, while liability only coverage pertains solely to legal liability for injuries or damages caused to others, which does not cover personal property at all.

Thus, understanding that HO-3 policies provide all risk coverage for personal property is essential for agents to effectively assist clients in choosing the right protection for their homes and belongings.