Texas General Lines — Property and CasualtyPersonal LinesHard
A client has an HO-6 Unit-Owners Form for their condominium. A fire originating in a neighboring unit causes smoke damage to the interior walls and built-in cabinets of the client's unit. The master condominium association policy covers the exterior of the building and common areas. Which part of the client's HO-6 policy would cover the smoke damage to their unit's interior walls and built-in cabinets?
- ACoverage D - Loss of Use
- BCoverage B - Other Structures
- CCoverage C - Personal Property
- DCoverage A - Dwelling (Unit-Owners)
Show answer & explanationAnswer & explanation
Correct answer: D. Coverage A - Dwelling (Unit-Owners)
Under an HO-6 policy, Coverage A (Dwelling) is specifically adapted for condominium unit owners. It typically covers alterations, appliances, fixtures, and improvements that are part of the unit itself, starting from the 'walls-in'. Smoke damage to interior walls and built-in cabinets falls under this coverage, as these are considered part of the unit owner's insurable interest.
Why the other options are wrong
- A. Coverage D provides for additional living expenses if the unit is uninhabitable due to a covered loss, not physical damage to the unit itself.
- B. HO-6 policies do not have Coverage B for 'Other Structures' as there are no detached structures to insure.
- C. Coverage C is for personal belongings, not built-in structural components.
HO-6 Coverage A (Unit-Owners)
In an HO-6 policy, Coverage A is tailored for condominium unit owners, covering the interior structure of their unit, including improvements, alterations, and fixtures they are responsible for.
- Covers 'walls-in' for condo unit owners.
- Includes improvements, alterations, and built-in appliances.
- Excludes exterior structure, which is typically covered by the association master policy.
Memory trick: An HO-6 covers your condo unit from 'walls-in' and your personal touch.