California Property & Casualty Broker-AgentProperty InsuranceMedium
A client lives in a condominium and wants to ensure their personal property, as well as improvements they made to their unit, are covered. Which homeowners policy form is most appropriate for this type of dwelling?
- AHO-2 (Broad Form)
- BHO-6 (Unit-Owners Form)
- CHO-4 (Contents Broad Form)
- DHO-3 (Special Form)
Show answer & explanationAnswer & explanation
Correct answer: B. HO-6 (Unit-Owners Form)
The HO-6 (Unit-Owners Form) is specifically designed for condominium unit owners. It covers personal property, as well as improvements and betterments made to the unit, while the master condo association policy covers the building structure.
Why the other options are wrong
- A. HO-2 is for owner-occupied dwellings and covers the dwelling and personal property on a broad named perils basis.
- C. HO-4 is for renters and only covers personal property, not the dwelling or improvements to it.
- D. HO-3 is for owner-occupied dwellings and provides open perils coverage for the dwelling and broad named perils for personal property.
HO-6 (Unit-Owners Form)
A homeowners insurance policy specifically designed for condominium unit owners. It covers the insured's personal property, improvements and betterments made to the unit, and provides limited coverage for unit structures.
- Covers personal property on a named perils basis.
- Includes coverage for the interior walls, floors, and ceilings of the unit.
- Provides liability coverage.
- Often includes coverage for assessments levied by the condo association for covered losses.
Memory trick: Forms for Every Home Type.