South Carolina Personal Lines Practice Exam

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Study for the South Carolina Personal Lines Exam. Use flashcards and multiple choice questions, each with hints and explanations. Prepare for your exam today!

Practice this question and more.

Which of the following statements is true about HO-4 form coverage?

It covers buildings under construction
It does not cover personal property
It is designed for renters
It includes backup of sewer coverage

The correct answer is: It is designed for renters

The statement regarding the HO-4 form being designed for renters is accurate. The HO-4 policy, also known as Renters Insurance, is specifically tailored for individuals who are leasing or renting a residence. It provides coverage for personal belongings and liability protection, catering to the needs of renters who do not own the structure of the dwelling they inhabit. This form covers personal property against various risks, offers additional living expenses if a rented home becomes uninhabitable, and includes personal liability coverage, making it an essential option for renters. Understanding the purpose of the HO-4 policy is crucial when advising clients or assessing insurance needs for those who are not homeowners.