Texas All Lines Adjuster Practice Test

What is the primary coverage provided by the HO Form 4?

1. Apartment liability coverage

2. Comprehensive structural and contents coverage

3. Named-peril coverage for renter's personal property

4. Limited coverage for condominium owners

The correct answer is: Named-peril coverage for renter's personal property

The HO Form 4 is specifically designed to provide coverage for renters, which includes named-peril coverage for their personal property. This means that it covers the personal belongings of the insured against specific risks that are explicitly listed in the policy. The named-perils may include risks such as fire, theft, vandalism, and certain types of water damage, protecting the renter's possessions within the rented space. While other options may refer to different aspects of homeowner or renters insurance, the HO Form 4 is not structured to include options for apartment liability or comprehensive structural coverage, which are features found in other forms. Similarly, limited coverage for condominium owners pertains to a different form altogether, clearly delineating the purpose of the HO Form 4 as one that specifically addresses the needs of renters and their personal property. Therefore, C accurately describes what the HO Form 4 provides to its insured.