Question

Question
What is one difference between an HO-3 and an HO-5 policy? (1 point)
Responses

They are the same, but one is newer.

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.

An HO-5 does not include coverage for the dwelling

Answers

Answered by GPT-4o mini
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 is a key distinction between the two types of homeowner's insurance policies.
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