Under the HO-3 policy, what type of coverage is provided for contents?

The HO-3 policy, which is a type of homeowners insurance, typically provides named-peril coverage for personal property or contents. This means that only specific risks that are explicitly listed in the policy are covered. For example, named perils may include fire, theft, and vandalism, among others. If a peril is not listed in the policy, it is not covered.

This type of coverage contrasts with all-peril coverage, which protects against a broader range of risks unless specifically excluded in the policy. Therefore, under the HO-3 policy for contents, it is crucial to recognize that if an incident is not mentioned among the specified perils, there would be no coverage for that loss.

While replacement value coverage refers to how the insurer will cover losses (by replacing items at current market value), this does not pertain directly to the type of coverage but rather to the valuation method of the covered losses. Additionally, liability coverage is generally separate from contents coverage, protecting against claims or lawsuits for bodily injury or property damage that the insured may cause to others, rather than covering the insured's own personal property.