California Personal Lines Broker Practice Test 2025 - Free Practice Questions and Study Guide

HO 3 is indeed the most common homeowners policy in the market. This type of policy provides comprehensive coverage, known as an "open perils" form, for the structure of the home and a more limited coverage for personal property on a "named perils" basis. Given its broad range of coverage for the dwelling and its popularity among homeowners, it has become a standard option for many individuals seeking to protect their residence.

Other forms such as HO 1 and HO 5 do not adhere to the same structure. HO 1 is a very basic policy that typically covers a limited number of specific perils, while HO 5 does offer broader coverage for personal property, but it operates on an open peril basis, not a named peril basis. HO 6, which pertains to condominium insurance, offers coverage for personal property and liability, but it does not exclusively cover personal liability, as it also includes some protection for the condo unit itself.

The comprehensive nature and widespread acceptance of HO 3 make it the policy of choice for many homeowners, reinforcing its status as the most common type of homeowners policy.