What is the primary difference between an HO 2 and an HO 4?

The primary difference highlighted in the context of the HO 2 and HO 4 forms is that the HO 2 is indeed written on a broad form basis and is designed for homeowners who own and reside in a dwelling. This policy provides coverage for the dwelling itself and personal property within it on a named-peril basis, which means that it lists specific risks that are covered.

In contrast, the HO 4 is a renters policy, tailored for individuals who rent their living space. It does not cover the dwelling itself but rather focuses on covering personal property for those who do not own the structure. This distinction is crucial in understanding the target audience of each policy form; the HO 2 targets homeowners, whereas the HO 4 is meant for renters.

The other options present inaccuracies regarding the nature of coverage provided by these forms, leading to confusion about their application and the demographics they serve. For instance, liability coverage is typically included in both forms, but the specifics of what they cover differ based on ownership and the dwelling's structure. Therefore, the characterization of the HO 2 as a broad-form policy for dwelling owners is accurate and reflective of its intended use.