Minnesota Real Estate Exam Practice Question
The HO-3 homeowners form covers perils in which of the following ways?
Correct Answer: B
Rationale: The HO-3 homeowners form provides robust coverage by utilizing a combination of open and named perils. Option B accurately describes this structure: it offers open perils for Coverage A (dwelling) and Coverage B (other structures), meaning it covers all risks except those specifically excluded. Coverage C (personal property) is covered on a named perils basis, protecting against only those risks explicitly listed in the policy.
Option A incorrectly suggests that Coverage C is also open perils, which is not the case. Option C reverses the coverage types, indicating named perils for Coverage A and B, which is incorrect. Option D misstates the coverage by suggesting named perils for both Coverage B and C, failing to recognize the open perils for Coverage A.
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