What type of coverage does an HO 5 policy include?

An HO 5 policy, known as the Comprehensive Form, provides broad coverage for both the dwelling and personal property. Specifically, it covers “all perils” for the dwelling, meaning it protects against any risks except for those specifically excluded in the policy. This type of coverage offers homeowners a substantial level of protection since it includes virtually all forms of damage that could occur to the physical structure of the home.

In addition to covering the dwelling for all perils, the policy also extends comprehensive protection to personal property. This provides homeowners with peace of mind knowing that their belongings are well safeguarded against a wide range of possible threats.

The other options, while they describe different types of homeowners policies, do not apply to the HO 5. For instance, named perils coverage limits protection to specific risks, while the broad perils policy refers to coverage that is not as comprehensive as the all-perils approach of an HO 5. Liability coverage is a separate aspect entirely and not the primary focus of this particular homeowners policy. The comprehensive nature of the HO 5 is what distinguishes it from other home insurance options and is why this is the correct answer.