Arizona Adjuster Practice Exam

Which homeowners coverage form is best suited for Tom and Ann, who have purchased a condominium as a secondary residence?

1. HO 4 Contents Form

2. HO 3 Special Form

3. HO 6 Unit-Owners Form

4. HO 5 Comprehensive Form

The correct answer is: HO 6 Unit-Owners Form

The HO 6 Unit-Owners Form is specifically designed for individuals who own a condominium, making it the most appropriate choice for Tom and Ann in this scenario. This coverage form recognizes that condominium owners typically do not own the entire building but rather their individual unit. The HO 6 policy provides essential protection for the interior of the condo unit, personal property, and liability, which are areas not covered under the condominium association's master policy. Unlike the other options, the HO 6 form accounts for the unique structure of condominiums. For instance, while the HO 3 Special Form covers homes and is suitable for single-family residences, it does not address the specific needs of condo owners. The HO 4 Contents Form is tailored for renters and would not be appropriate, as Tom and Ann own the unit. The HO 5 Comprehensive Form offers broader coverage than necessary for a condominium, as it is also meant for single-family homes. Thus, the HO 6 Unit-Owners Form is the best fit for Tom and Ann's situation, providing essential coverage tailored to condominium ownership.