What type of loss is the HO-3 Special Form designed to cover?

The HO-3 Special Form is designed to provide coverage for all risks of direct physical loss unless specifically excluded in the policy. This means that if a peril is not mentioned in the exclusions, it is generally covered. This type of coverage offers broad protection, giving homeowners peace of mind by protecting their home and possessions from a wide array of potential risks.

This form is primarily used for dwelling coverage, which means it covers the structure of the house and any attached structures against various types of damage, providing a comprehensive safety net. It's important to note that while the dwelling is covered on an open-perils basis, personal property is typically insured on a named-perils basis, which covers only specific risks listed in the policy. This distinction is essential for understanding the scope of coverage available under the HO-3 form.