What is one difference between an HO-3 and an HO-5 policy? (1 point)
Responses
They are the same, but one is newer.
They are the same, but one is newer.
The HO-3 policy does not include liability.
The HO-3 policy does not include liability.
The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property.
The HO-3 uses replacement cost reimbursement for dwelling and actual cash value for personal property while the HO-5 uses replacement cost for dwelling and for personal property.
An HO-5 does not include coverage for the dwelling.
An HO-5 does not include coverage for the dwelling.
The correct response is:
The HO-3 policy uses actual cash value for personal property, while the HO-5 policy uses replacement cost for personal property.