What differentiates an HO 3 from an HO 3 with an HO 15 endorsement?

The statement that an HO 3 covers all risks on the dwelling, while an HO 15 only covers personal property, effectively highlights the primary distinction between these two forms. The HO 3 policy is a type of homeowners insurance that provides coverage for the dwelling on an open perils basis, meaning it generally covers all risks unless specifically excluded in the policy. This offers a high level of protection for the physical structure of the home.

In contrast, the HO 15 endorsement, often referred to as a Personal Property Replacement Cost endorsement, enhances the coverage for personal property specifically. It provides broader coverage for personal belongings, protecting them against more perils compared to a standard personal property coverage provided within the typical HO 3 policy. However, this endorsement does not modify the nature of dwelling coverage provided by the HO 3.

Understanding the scope of coverage for the dwelling and the personal property is essential. The HO 3 policy fundamentally protects the home, while the HO 15 focuses on ensuring that personal belongings are protected more comprehensively, but it does not alter the nature of risk coverage for the dwelling itself. This distinction is vital for policyholders when assessing their insurance needs for both structure and contents within their homes.