An HO-3 policy provides named peril protection for which of the following?

An HO-3 policy is designed to provide a unique combination of coverage types. For the dwelling itself, the policy offers open peril protection, which means it covers all risks unless specifically excluded. However, the correct answer focuses on personal property, which is listed as having named peril protection. This means personal property is only covered for specific perils that are explicitly stated in the policy.

In this context, named peril protection implies that coverage is limited to the risks outlined in the policy documentation, such as fire, theft, or vandalism, without extending to everything that might happen to personal property. Understanding this distinction between named peril for personal property and open peril for the structure is crucial for grasping how homeowners insurance policies function.

This knowledge is fundamental for a public adjuster when advising clients on their coverage options or when they are helping to settle claims, as it helps ensure that clients have an accurate understanding of the limits and protections that apply to their personal belongings under an HO-3 policy.