South Carolina Personal Lines Practice Exam

Which endorsement adds coverage for alterations and improvements made by the condo unit owner?

1. HO-3 Endorsement

2. Condo Unit Owners Endorsement

3. Water Backup Endorsement

4. Off Premises Broad Theft Endorsement

The correct answer is: Condo Unit Owners Endorsement

The Condo Unit Owners Endorsement is designed specifically to provide coverage for alterations, improvements, and betterments made by a condo unit owner. Condo owners often customize their units by making various improvements such as upgraded fixtures, enhanced flooring, or other renovations, which may not be covered under the standard condominium insurance policy. This endorsement allows them to ensure that their investments in these alterations are adequately protected. While the other options relate to different aspects of coverage—such as broader home coverage, water damage, or theft occurring off the premises—they do not address the specific needs of condo owners who have made personal enhancements to their units. Thus, the Condo Unit Owners Endorsement stands out as the correct choice for providing protection for such personal improvements.