Which coverage form would be least appropriate for a dwelling with a substantial replacement cost?

The HO 1 Basic Form is the least appropriate coverage for a dwelling with a substantial replacement cost due to its limited coverage options. The HO 1 form is a basic homeowner's insurance policy that typically covers only specific perils and does not provide comprehensive protection. It offers coverage for a narrow range of named perils, such as fire, lightning, and windstorm, rather than broader protection that would be suitable for a property with a high replacement cost.

Properties with substantial replacement costs generally require policies that encompass a wider range of perils and provide more extensive coverage. Coverage forms like the HO 2 Contents Broad Form or the HO 6 Unit-Owners Form offer more comprehensive protection against numerous risks, making them more suitable for valuable dwellings. The HO 8 Modified Coverage Form also provides modified coverage that may be more aligned with older homes but still lacks the all-encompassing nature needed for expensive properties.

In summary, the limited nature of the HO 1 Basic Form makes it unsuitable for covering significant replacement costs, whereas the other options allow for more extensive protection that would better meet the needs of a high-value dwelling.