Homeowners Policy (HO)Question 339 of 531
Two policies each carry $60,000 of Coverage C: one is a tenants HO-4 and the other a unit-owners HO-6. Their loss of use limits are:
a.$30,000 for each, as both use 50% of C
b.$18,000 for the tenant and $30,000 for the unit
c.$60,000 for each, matching the C limit
d.$18,000 for each, as both use 30% of C
Explanation
Loss of use on a tenants form is 30% of Coverage C, giving 0.30 x $60,000 = $18,000, while the unit-owners form uses 50% of Coverage C, giving 0.50 x $60,000 = $30,000. The two answers that apply a single percentage to both forms miss that the forms differ on this point. Matching the full contents limit describes no standard loss of use provision.
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