What type of property does an HO 3 policy typically NOT cover?

An HO 3 policy, also known as a Homeowners 3 policy, is designed primarily for owner-occupied residences and typically provides coverage for the dwelling, personal property, loss of use (including living expenses if the home is uninhabitable), and personal liability. One key aspect of this policy is that it usually excludes coverage for business equipment or commercial property.

This exclusion stems from the nature of the policy, which is tailored for residential use rather than business activities. Homeowners who operate a business out of their home may need to seek additional coverage through separate business insurance policies or endorsements to protect their business-related property. Therefore, the understanding that business equipment is not covered under an HO 3 policy is accurate and essential for distinguishing between personal and commercial coverage.