Homeowners Policy (HO)Question 308 of 474
On an HO-4, the Coverage D limit is stated as a percentage of:
a.Coverage A, at 10% of the dwelling limit
b.Coverage A, at 30% of the dwelling limit
c.Coverage C, at 50% of the contents limit
d.Coverage C, at 30% of the contents limit
Explanation
A tenant has no dwelling limit to work from, so loss of use on the tenants form is pegged to contents at 30% of Coverage C. The answer using 50% of Coverage C is the unit-owners relationship, and both answers built on Coverage A assume a dwelling limit the tenants form does not carry.
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