South Carolina Personal Lines Practice Exam

Which HO form is specifically designed for a tenant living in an apartment?

1. HO-1

2. HO-2

3. HO-3

4. HO-4

The correct answer is: HO-4

The HO-4 form, commonly known as the renters insurance policy, is specifically designed for tenants who occupy rental properties such as apartments. This form provides coverage for personal property within the rented unit and often includes liability protection in case someone is injured while visiting the tenant's home. Unlike homeowners policies (like the HO-1, HO-2, and HO-3), which are intended for those who own their homes and cover the dwelling itself, the HO-4 focuses on the needs of renters by ensuring their personal belongings are protected against certain risks, as well as providing coverage for losses from scenarios like theft or fire. Renters typically do not have responsibility for insuring the physical structure of the building they reside in—that responsibility lies with the landlord. Therefore, the HO-4 is tailored to specifically address this relationship, providing essential coverage for tenants who need to safeguard their possessions without needing dwelling coverage.