Which of the following best describes the HO-5 policy?

The HO-5 policy, commonly referred to as a special form homeowners insurance policy, is notable for its comprehensive coverage. It is designed to provide coverage for both the structure of the home and the personal property of the insured. This means that it not only protects the real property (the house itself) but also offers extensive protection for personal belongings, such as furniture, clothing, and electronics, against a wide range of risks, including theft and damage from various perils.

This coverage is particularly valuable for homeowners because it allows for a broader and more inclusive protection plan than policies that might only cover the dwelling. The level of coverage extends to personal property, which is a defining feature of the HO-5 policy.

In contrast, options that refer to renters, low-income individuals, or limited coverage are not representative of the HO-5 policy characteristics. The HO-5 is not designed exclusively for renters, nor is it aimed at low-income families. Moreover, it does not limit coverage to only direct damage to the house, as it encompasses a full range of personal property and typically includes broader peril coverage—making it one of the most advantageous homeowner policies available.