Florida Community Association Manager Practice Exam

What type of insurance policy covers a member in a condominium or cooperative?

1. HO-4

2. HO-5

3. HO-6

4. HO-3

The correct answer is: HO-6

The HO-6 insurance policy is specifically designed to cover individuals in condominium or cooperative living situations. This type of policy provides personal property coverage and personal liability coverage for the unit owner. It typically protects against damage to personal belongings within the unit and may also cover improvements made to the interior of the unit, such as upgrades and renovations. In a condominium or cooperative, the community association generally holds a master insurance policy that covers the building’s structure and common areas, but this does not extend to personal property within individual units. Therefore, the HO-6 fills that gap by offering the necessary protection directly to the unit owner for their specific needs. Other policy types, such as HO-4, HO-5, and HO-3, are not tailored for condominium or cooperative insurance. HO-4 is a renters' insurance policy, HO-5 provides broader coverage for homeowners but is not suitable for condo owners, and HO-3 is a standard homeowners' policy primarily used for single-family residences. Each of these options is designed with different types of living arrangements in mind, underscoring why the HO-6 is the appropriate choice for condominium and cooperative residents.