North Carolina Adjuster Practice Exam

Which of these losses would be covered by Missy’s HO-6 policy after a windstorm damages the building?

1. The damaged roof

2. Personal property in her unit

3. Condominium association's common areas

4. Structural damage to the building

The correct answer is: Personal property in her unit

The correct answer reflects the nature of coverage provided by an HO-6 policy, also known as a condo insurance policy. This type of policy is designed primarily to cover personal property and certain structural components within the owner's unit. After a windstorm causes damage, an HO-6 policy typically covers the personal property located inside the condominium unit, such as furniture, electronics, and personal belongings. While the damaged roof and structural damage to the building may be significant, these areas are generally responsibilities of the condominium association as they typically cover the exterior of the building and the common areas. Therefore, damages to those structural elements are not covered under an individual homeowner's policy like the HO-6. The same goes for the condominium association's common areas, which would be managed and insured by the association itself, rather than by individual unit owners. This delineation of responsibility is crucial in understanding what an HO-6 policy encompasses, emphasizing that the policy primarily focuses on a unit owner's personal property and certain interior structural integrity, rather than the building as a whole or shared spaces.