North Carolina Adjuster Practice Exam

Which of the following would be covered under Ben's HO-4 policy during a windstorm?

1. Damage to the rented house

2. Damage to a carport he built

3. Damage to a neighbor's tree

4. Personal property of a guest

The correct answer is: Damage to a carport he built

The HO-4 policy, commonly referred to as a renter's insurance policy, is designed to provide coverage for personal property within a rented unit, but it does not extend to the structure itself or any structures not owned by the insured, including modifications made to the property like a carport, unless explicitly included in the policy. In the context of a windstorm, while the carport Ben built may seem like a potential area of concern, the key here is to understand what the policy actually covers. An HO-4 policy typically offers limited protection only for personal belongings, not for any structures created by the renter unless specifically covered under provisions for additional coverages or endorsements. Thus, personal property belonging to Ben is indeed covered during a windstorm, but damage to the carport he built would typically fall outside the scope of an HO-4's coverage. This policy does not cover damages to the rented home itself, its structural components, a guest's personal possessions, or neighboring property, as those fall under different coverage types (like HO-3 for homeowners or liability covers). The distinction lies in recognizing that while personal contents are insured to a degree, the structural integrity or personal constructions are not. Therefore, it’s clear that the leased property