What is one difference between an HO-3 and an HO-5 policy? (1 point) Responses They are the same, but one is newer. They are the same, but one is newer. The HO-3 policy does not include liability. The HO-3 policy does not include liability. The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property. The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property. An HO-5 does not include coverage for the dwelling.What is one difference between an HO-3 and an HO-5 policy? (1 point) Responses They are the same, but one is newer. They are the same, but one is newer. The HO-3 policy does not include liability. The HO-3 policy does not include liability. The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property. The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property. An HO-5 does not include coverage for the dwelling.What is one difference between an HO-3 and an HO-5 policy? (1 point) Responses They are the same, but one is newer. They are the same, but one is newer. The HO-3 policy does not include liability. The HO-3 policy does not include liability. The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property. The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property. An HO-5 does not include coverage for the dwelling.What is one difference between an HO-3 and an HO-5 policy? (1 point) Responses They are the same, but one is newer. They are the same, but one is newer. The HO-3 policy does not include liability. The HO-3 policy does not include liability. The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property. The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property. An HO-5 does not include coverage for the dwelling.
1 answer
The correct response is: The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property, while the HO-5 uses replacement cost for dwelling and for personal property.
This highlights the key difference in how personal property is valued in claims between the two policy types. The HO-5 offers more comprehensive coverage for personal belongings by reimbursing at replacement cost rather than actual cash value.
