What type of homeowners policy offers coverage for personal property at actual cash value?

The HO-5 homeowners policy, also known as the Comprehensive Homeowners Policy, provides coverage for personal property on an actual cash value basis. This means that in the event of a covered loss, the insurer will pay out the value of the personal property at the time of the loss, taking depreciation into account.

This type of policy typically covers a broad range of perils and offers more extensive protection for personal belongings compared to other homeowners policies. For instance, both the HO-2 (Broad Form) and HO-3 (Special Form) policies primarily cover personal property on a replacement cost basis, which does not account for depreciation and reflects the cost to replace the items with new ones. The HO-4 (Contents Form), designed primarily for renters, also provides personal property coverage but often on a replacement cost basis as well.

Therefore, the HO-5 policy’s emphasis on actual cash value coverage for personal property distinguishes it as the correct answer to the question.