What type of insurance provides an additional 50% coverage on personal property for losses?

The HO-3 policy is the correct choice for providing an additional 50% coverage on personal property for losses. This policy is a popular homeowners insurance form that offers comprehensive protection for the dwelling and commonly includes coverage for personal property at actual cash value or replacement cost, depending on the specifics of the policy. The additional 50% mentioned serves as a buffer to further enhance the protection provided for personal belongings, which is particularly valuable in case of a major loss.

In contrast, the HO-1 policy, which is a more basic form of homeowners insurance, provides limited coverage and is generally not widely offered. The HO-2 policy offers named perils coverage, which means it only covers losses specifically listed in the policy and does not automatically include the enhanced personal property coverage. The HO-5 policy, while also comprehensive, is designed for more upscale properties, and it typically offers replacement cost for personal property but does not specifically mention the additional 50% coverage in the way the HO-3 does.

Understanding these distinctions helps clarify why the HO-3 policy is the best answer for providing enhanced personal property coverage among the various homeowners insurance options.