The Homeowners Guide you need to PASS the Property and Casualty Exam
- pandcpacademy
- Dec 12, 2025
- 5 min read
Updated: 1 day ago
All of the Homeowners Forms and coverages you need to pass the Property and Casualty Insurance Exam — this guide includes all of the forms and coverages along with key details, memorization tricks, and helpful hints that you need to know for exam day!
The Must Have Homeowners Cheat Sheet to PASS the Property and Casualty Insurance Exam
In short, the HO forms are the available Homeowners Insurance Policies that can insure a home.
Here’s a breakdown of the HO Forms — HO‑1 through HO‑8 — along with the key details, memorization tricks, and helpful hints!
HO-1 (BASIC Form) – Covers only specific NAMED perils (3 basic fire perils, 8 extended perils, PLUS THEFT). Coverage is on an ACV basis.
HO-2 (BROAD Form) – Covers specific NAMED Broad perils (3 basic fire perils, 8 extended perils, Theft, PLUS BROAD Perils). Coverage is on a Replacement Cost Basis. ONLY added Broad EXCLUSION: Pollution.
HO-3 (Special Form) – Covers buildings on an OPEN Peril Basis. Covers personal property on specific NAMED broad perils (3 basic fire perils, 8 extended perils, Theft, PLUS BROAD Perils). Coverage is on a Replacement Cost basis.
HO-4 (Renters/ Tenants Form) – Covers personal property on specific NAMED broad perils (3 basic fire perils, 8 extended perils, Theft to personal property, PLUS BROAD Perils). Coverage is on a Stated Valued Basis.
HO-5 (Comprehensive Form) – Covers building/property AND personal property on an OPEN Peril basis. Only has Exclusions. Coverage is on a Replacement Cost basis.
HO-6 (Condo Unit Owners Form) – Covers personal property on specific NAMED broad perils (3 basic fire perils, 8 extended perils, Theft to personal property, PLUS BROAD Perils). Also covers anything interior (Cabinets, plumbing, electrical fixtures, wall-to-wall carpeting). Coverage is on a Stated Valued Basis.
HO-8 (Modified Coverage Form) – For older Victorian homes. Replacement cost far exceeds market value. Covers only specific NAMED perils (3 basic fire perils, 8 extended perils, PLUS THEFT). Coverage is on an ACV basis.
A key to passing the Property & Casualty exam is breaking down the information in simple, logical ways. Put the forms into chunks to simplify it. This can be applied to DP Forms (DP1, DP2, DP3) & HO Forms.
Key Takeaways on HO Forms
(1, 2, and 3) are your Basic, Broad, and Special forms. These forms are seen throughout multiple sections, from Dwelling, Homeowners, Farm, to Commercial.
HO‑1 → Basic
HO‑2 → Broad
HO‑3 → Special
(3 & 5) are both ODD numbers & ONLY forms that are on an open peril basis.
HO‑3 → Special Form. Open-Peril Coverage on Dwelling. Named Peril on Personal Property.
HO‑5 → Comprehensive Form. Open-Peril Coverage on Dwelling AND Personal Property.
(4, 6, and 8) are the EVEN numbers.
HO‑4 → Renters Form → Think R.E.N.T is a 4-letter word.
HO‑6 → Condo Owners Form → Think C.O.N.D.O.S is a six-letter word.
HO‑8 → Modified Coverage Form → Think 8 is the oldest sibling (Oldest Form = Older Homes).
Now that you’ve mastered the forms… Let’s master the Homeowners Coverages for the P&C Exam
This is your must-have cheat sheet if you are studying for the Property and Casualty Exam and struggling with the Homeowners Chapter. Now that you understand the HO forms, the next key piece for the Property & Casualty Exam is knowing the Homeowners Coverages. Each homeowners policy includes several coverage parts, labeled A through F. A Homeowners policy is broken down into two parts. Coverages A through D are considered part I; that's the property coverage, and Coverages E and F are considered part II; those are both your liability coverages.
Coverage A – Building / Dwelling
- Building coverage includes only the dwelling itself and anything permanently attached to the building (e.g., ATTACHED garage, wall-to-wall carpeting).
Coverage B – Other Structures / Separate Structures / Appurtenant Structures
- Covers detached structures on the property (separate garage, shed, fencing, in-ground swimming pool).
- Coverage is 10% of Coverage A.
Coverage C – Personal Property / Contents Coverage
- Covers indoor/outdoor furniture, clothing, jewelry, electronics, appliances/refrigerator, linens/drapes, toys, books, sporting equipment.
- Coverage is Worldwide and on a Named-Peril Basis.
- Coverage is 50% of Coverage A.
Coverage D – Additional Living Expense / Loss of Use
- Pays for temporary living costs if the home becomes uninhabitable due to a covered loss (e.g., rental/motel expenses, meals while the home is being repaired due to loss from a covered peril).
- Does NOT cover normal expenses, such as a mortgage.
- Coverage is 30% of Coverage A.
Coverage E – Liability
- Covers legal liability for bodily injury or property damage to others both on & offsite.
- Pays for costs over & above the medical limit amount.
- On-site example: A visitor falls down the stairs of the insured home.
- Off-site example: The insured accidentally injures someone while playing basketball at a local gym.
- Minimum liability limit: $100,000 Per Occurrence.
Coverage F – Medical Payments
- No Fault Coverage that pays medical expenses for guests, visitors, and residence employees injured on the insured property (residence employees only while ON the premises & actively working).
- Primary intent: Avoid lawsuits.
- Generally limited to the insured's premises (can extend to certain off-premises situations).
- Medical claims can be covered for up to 3 years from the date of the occurrence.
- Minimum liability limit: $1,000 Per Person.
Simplifying complex concepts into smaller, memorable chunks is KEY to retention!
For HO Policies, Coverages B, C, & D have a percentage of Coverage A (Dwelling/building coverage). Memorizing the numbers “10, 50, 30” can save time & mental energy on exam day.
Coverage B: 10% of Coverage A
Coverage C: 50% of Coverage A
Coverage D: 30% of Coverage A
Exam Day Tip: The exam writers may try to trick you by saying something like “Coverage D is 30% of Coverage B.” Always remember: These percentages are calculated based on Coverage A. NEVER B or C.
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