The HO-3 form is a good policy for first-time buyer owners because it is a named perils policy.

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Quizplus · Accepted Answer

The HO-3 form is actually a combination of named perils and open perils coverage, which makes it a more comprehensive policy than a strictly named perils policy. While named perils coverage typically only covers specific types of damage listed in the policy, open perils coverage covers any type of damage except for those specifically excluded. This makes the HO-3 policy a good choice for many homeowners, but it may not be the best fit for every situation.

The HO-3 Form Is a Good Policy for First-Time Buyer