Homeowners Policy (HO)Question 309 of 474
A unit-owner carries Coverage C of $60,000 on an HO-6. The loss of use limit on that form is:
a.$5,000
b.$60,000
c.$18,000
d.$30,000
Explanation
The unit-owners form writes Coverage D at 50% of Coverage C, so 50% of $60,000 gives $30,000 for additional living expense and fair rental value combined. The $18,000 answer applies the 30% relationship used on the tenants form, and $5,000 is the small built-in building-property limit, not a loss of use figure.
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