South Carolina Personal Lines Practice Exam

Which HO form is specifically designed for condominium owners?

1. HO-3

2. HO-4

3. HO-6

4. HO-8

The correct answer is: HO-6

The form specifically designed for condominium owners is HO-6. This form provides coverage that is tailored to the unique needs of those who own condominiums. Unlike single-family home policies, which are typically outlined in forms like HO-3 or HO-8, the HO-6 addresses the specific risks and shared ownership structure associated with condominium living. Condominium owners typically only need coverage for the interior of their unit and personal property, as the external structure and common areas are generally covered under the condominium association's master policy. The HO-6 form includes coverage for improvements and betterments made by the unit owner, personal property, and liability for incidents occurring in the unit, making it well-suited for this type of dwelling. When considering the other forms, HO-3 is intended for homeowners, HO-4 is designed for renters who do not own the structure, and HO-8 is meant for older homes that may not meet the requirements of more modern forms. Each of these has different coverage aspects that do not specifically cater to the needs of condominium owners the way the HO-6 does.