Texas General Lines — Property and CasualtyPersonal LinesEasy
A client is purchasing a new condominium unit and needs insurance for their personal belongings, improvements they make to the unit, and liability. Which Homeowners policy form is most appropriate for their needs?
- AHO-4 (Contents Broad Form)
- BHO-2 (Broad Form)
- CHO-3 (Special Form)
- DHO-6 (Unit-Owners Form)
Show answer & explanationAnswer & explanation
Correct answer: D. HO-6 (Unit-Owners Form)
The HO-6 (Unit-Owners Form) is specifically designed for condominium owners. It provides coverage for personal property, alterations and improvements made to the unit, and personal liability, which aligns perfectly with the client's needs.
Why the other options are wrong
- A. HO-4 is for renters, not owners of condo units.
- B. HO-2 is for single-family homes, not condo units.
- C. HO-3 is for single-family homes, not condo units.
HO-6 (Unit-Owners Form)
The HO-6 policy is specifically tailored for condominium unit owners, providing coverage for their personal property, improvements made to their unit, and personal liability.
- Covers personal property (Coverage C) on a named-peril basis.
- Provides limited dwelling coverage (Coverage A) for improvements and alterations within the unit.
- Includes personal liability (Coverage E) and medical payments (Coverage F).
Memory trick: Each home type has its 'HO' number – HO-6 for 'condo-six'.