South Carolina Personal Lines Practice Exam

Why is dwelling coverage not included in HO-4?

1. It is for homeowners only

2. It covers only rental properties

3. It is a tenant form; coverage is provided by the landlord

4. It has a different structure coverage

The correct answer is: It is a tenant form; coverage is provided by the landlord

Dwelling coverage is not included in the HO-4 form, commonly known as renters insurance, because this form is specifically designed for tenants who do not own the structure they live in. Rather than protecting the physical dwelling itself, which is owned by the landlord, the HO-4 policy focuses on covering personal property and providing liability protection for the tenant. In essence, it addresses the needs of individuals who rent their living space, acknowledging that the responsibility for the building's structure lies with the landlord, who typically has their own insurance policy for that purpose. Therefore, the HO-4 does not provide dwelling coverage since it is not relevant to the tenant’s insurance needs; the tenant's primary concern is the protection of their personal belongings and any liability for injuries that may occur within the rented premises. This makes it clear why dwelling coverage would be unnecessary in this context, as it pertains to situations where individuals do not have property ownership and thus do not require coverage for a structure they do not own or maintain.