Free Florida General Lines Agent Exam (2-20) Flashcards

The HO-2 broad form covers the dwelling, other structures and personal property only for the named perils listed in the form, such as fire, windstorm, theft, vandalism and sudden and accidental water discharge. An HO-3 covers the dwelling on an open-perils basis, so a loss from a cause that is not listed and not excluded is still paid. The narrower insuring agreement is why the HO-2 costs less, and the agent should explain that an unusual cause of loss to the structure may fall outside it.