1. The HO-2 (broad form) homeowners policy covers the dwelling and personal property on which basis?

A specified list of named perils

The HO-2 broad form insures the dwelling and personal property against a specified list of named perils.

2. The HO-5 (comprehensive form) homeowners policy generally insures both the dwelling and personal property on:

An open-perils basis

The HO-5 comprehensive form provides open-perils coverage on both the dwelling and personal property, the broadest standard form.

3. The HO-8 (modified form) is most appropriate for:

An older home where replacement cost greatly exceeds market value

The HO-8 modified form suits older homes by settling losses on a functional or actual cash value basis rather than full replacement cost.

4. When personal property is covered for named perils, a loss is paid only if:

The cause of loss is one of the perils specifically listed in the policy

Named-perils coverage pays only for losses caused by a peril specifically listed, placing the burden on the insured to show the cause is covered.