Texas General Lines — Property and CasualtyPersonal LinesEasy
A tenant lives in a rented apartment and wants to purchase insurance that will cover their personal belongings against perils such as fire, theft, and vandalism. They do not own the building itself. Which Homeowners policy form is specifically designed for tenants and provides broad named perils coverage for personal property?
- AHO-6 Unit-Owners Form
- BHO-4 Contents Broad Form
- CHO-2 Broad Form
- DHO-3 Special Form
Show answer & explanationAnswer & explanation
Correct answer: B. HO-4 Contents Broad Form
The HO-4 Contents Broad Form is specifically designed for tenants (renters) and provides broad named perils coverage for their personal property and liability, without covering the dwelling structure itself.
Why the other options are wrong
- A. HO-6 is for condominium unit owners, covering their personal property, unit improvements, and liability.
- C. HO-2 is for owner-occupied dwellings, covering the dwelling and personal property on a named perils basis.
- D. HO-3 is for owner-occupied dwellings, providing open perils for the dwelling and named perils for personal property.
HO-4 Contents Broad Form
An HO-4 policy, also known as a 'renters insurance' policy, provides coverage for a tenant's personal property and liability, but does not cover the dwelling structure itself.
- Designed for renters/tenants.
- Covers personal property on a named perils basis.
- Includes personal liability coverage.
Memory trick: Each HO form fits a different housing situation like a glove.