Arizona Adjuster Practice Exam

Victoria's insurance agent recommends which homeowners policy for purchasing a condominium?

1. HO 3 Standard Form

2. HO 5 Comprehensive Form

3. HO 6 Unit Owners Form

4. HO 4 Renters Form

The correct answer is: HO 6 Unit Owners Form

The recommendation for Victoria to purchase the HO 6 Unit Owners Form for her condominium is appropriate because this type of homeowners policy is specifically designed for individuals who own a condominium unit. The HO 6 policy provides coverage for personal property, personal liability, and interior improvements or betterments made to the unit, which are typically the responsibility of the unit owner rather than the condominium association. Unlike the HO 3 Standard Form or HO 5 Comprehensive Form, which are meant for single-family homes and offer broader protection for the structure itself, the HO 6 policy addresses the unique needs of condominium owners by acknowledging that the exterior structure and common areas are usually covered under a separate association insurance policy. This means it supplements the association's coverage rather than overlaps with it. Choosing an HO 4 Renters Form would not be suitable because this policy is intended for individuals who rent an apartment or a home, thus does not provide the homeowner's liability coverage or the specific protections necessary for condominium ownership. The HO 6 policy not only covers personal belongings but also holds the right provisions for those who live in a condo, making it the ideal option for Victoria’s situation.