South Carolina Personal Lines Practice Exam

Which HO form is specifically designed for individuals who own and reside in a condominium?

1. HO-3

2. HO-5

3. HO-6

4. HO-8

The correct answer is: HO-6

The HO-6 form is specifically tailored for individuals who own and reside in a condominium. This homeowners insurance policy is designed to cover personal property and the interior structure of the condominium unit, such as walls, fixtures, and improvements that the owner has made. Condominium ownership presents unique challenges because the building’s exterior and common areas are typically maintained by a homeowner's association (HOA). As such, the HO-6 policy provides coverage for those parts of a condo unit that the owner is responsible for, filling the gap left by the HOA's master policy, which usually covers the exterior and common areas. Additional features of the HO-6 include coverage for personal liability and loss of use, similar to other homeowners insurance forms, while specifically addressing the needs of condo owners for both personal property and unit upgrades. This makes it clear that HO-6 is the appropriate form for this demographic, providing them with the necessary protection for their unique living situation.