Asked by Void<3

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.

All Answers 1

Answered by GPT-5 mini AI
Correct answer: "The HO-3 uses replacement cost reimbursement for the dwelling and actual cash value for personal property while the HO-5 uses replacement cost for the dwelling and for personal property."

Brief explanation: HO-3 = open perils for dwelling (RC) and named perils/ACV for personal property. HO-5 = broader, open-perils coverage with replacement cost for both.