South Carolina Personal Lines Practice Exam

Which HO form does not provide dwelling coverage?

1. HO-3

2. HO-4

3. HO-5

4. HO-6

The correct answer is: HO-4

The HO-4 form, commonly known as "Renters Insurance," does not provide dwelling coverage because it is specifically designed for individuals who rent their living space rather than own it. Since renters do not have ownership of the physical structure where they reside, there is no need for dwelling coverage, which protects the building itself. Instead, the HO-4 focuses on providing coverage for personal property and liability, safeguarding the renter's belongings against risks such as theft, fire, and other hazards. In contrast, the HO-3, HO-5, and HO-6 forms are designed for homeowners or condo owners, and they provide varying levels of dwelling coverage. The HO-3 form is a standard homeowner's policy that offers coverage for the dwelling and personal property against a broad range of perils. The HO-5 form provides more extensive coverage for both personal property and the dwelling itself, often including coverage for more risks in a broader sense. The HO-6 form is tailored for condominium owners, covering personal property and the interior structure of the unit, indicating that it also includes dwelling coverage for what the policyholder is responsible for. Thus, the absence of dwelling coverage in the HO-4 form distinctly sets it apart from the other options.