Rhode Island Insurance Adjuster Exam

Which type of policy would an apartment dweller typically seek?

1. HO-3

2. HO-2

3. HO-4

4. HO-5

The correct answer is: HO-4

An apartment dweller typically seeks an HO-4 policy because it is specifically designed for renters. This type of policy, also known as renter's insurance, provides coverage for personal property within a rented residence against threats such as theft, fire, and other forms of damage. It also includes personal liability coverage, which protects the policyholder against claims of injury or damage to others while in their rented space. In contrast, the HO-3 and HO-5 policies are both home insurance products geared toward homeowners, covering both the structure and personal belongings, but they are not applicable for renters since they involve ownership of the property. The HO-2 policy, while it does provide some personal property coverage, is also meant primarily for homeowners and would not fit the needs of someone who rents an apartment. Thus, the HO-4 policy aligns perfectly with the coverage requirements and living situation of a renter.