What is the primary use of an HO-2 policy?

The primary use of an HO-2 policy is to provide coverage for owner-occupied residences. This type of homeowner's insurance policy is specifically designed to protect a person's home and personal property against certain named perils, such as fire, theft, and vandalism, among others. The HO-2 policy is known for providing broad coverage compared to other types of policies, making it suitable for homeowners who live in their own residences.

It differentiates itself from other insurance types, such as tenant's policies, which cover personal belongings but do not cover the structure itself. Additionally, it is not limited to apartment units or commercial properties, which fall under different types of insurance policies tailored to their specific needs. By focusing on owner-occupied residences, the HO-2 policy serves those who wish to insure both their dwelling and personal items under one comprehensive plan.