What is a distinguishing feature of HO-2 insurance policies?

The distinguishing feature of HO-2 insurance policies is that they provide named peril coverage for both the dwelling and personal property. This means that the policy specifically lists the perils (or causes of loss) that are covered. If a peril is not explicitly named in the policy, it is not covered.

HO-2 policies typically cover risks such as fire, lightning, windstorm, hail, explosion, vandalism, and others as specified in the policy. This is different from open peril policies, which cover all perils except those that are specifically excluded. The focus on named perils in HO-2 policies allows homeowners to have clarity regarding what is covered.

While some policies might include other forms of coverage such as liability or specific provisions for personal property, the key feature of HO-2 lies in its named peril approach—it distinctly offers this type of protection for both the dwelling itself and the personal belongings within it. This characteristic is what sets the HO-2 apart from other types of homeowners insurance.