Which of the following is not eligible for an HO-4 policy?

Which of the following is not eligible for an HO-4 policy?

• A. Owner-occupants in single-family homes
• B. Renters in a leased property
• C. Condo unit owners
• D. Tenants in multi-family dwellings

Answer: (C)

The correct choice indicates that condo unit owners are not eligible for an HO-4 policy. An HO-4 policy, also known as renters insurance, is specifically designed for individuals who rent their dwelling, providing coverage for personal property and liability with respect to that rented space. Since condo unit owners actually hold ownership of their units, they require a different type of policy, typically an HO-6 policy, which covers the interior of their unit and personal belongings, as well as liability. In contrast, the other groups listed—owner-occupants in single-family homes, renters in a leased property, and tenants in multi-family dwellings—either own or rent their living space but do not have ownership of the structure itself. Therefore, they can qualify for an HO-4 policy to protect their personal property and liability.

The correct choice indicates that condo unit owners are not eligible for an HO-4 policy. An HO-4 policy, also known as renters insurance, is specifically designed for individuals who rent their dwelling, providing coverage for personal property and liability with respect to that rented space. Since condo unit owners actually hold ownership of their units, they require a different type of policy, typically an HO-6 policy, which covers the interior of their unit and personal belongings, as well as liability.

In contrast, the other groups listed—owner-occupants in single-family homes, renters in a leased property, and tenants in multi-family dwellings—either own or rent their living space but do not have ownership of the structure itself. Therefore, they can qualify for an HO-4 policy to protect their personal property and liability.