Texas Adjuster Practice Test

What aspect of a roommate’s property may affect the personal property coverage under HO-B?

1. The value of the property

2. The policyholder’s ownership

3. The roommate's age

4. The location of the property

The correct answer is: The policyholder’s ownership

The aspect of a roommate’s property that affects personal property coverage under the Homeowners Policy B (HO-B) is primarily the policyholder's ownership. Homeowners insurance typically covers personal property that belongs to the insured individuals named in the policy. If the policyholder does not own the property that is in question, then it may not be covered under their homeowner's policy. The ownership of the property is crucial since insurance contracts are designed to protect the interests of the named insured. Personal property coverage generally applies to the insured’s belongings, and if the items belong to someone else, like a roommate, those items may not be included in the coverage unless specific provisions are made in the policy. For instance, if a policyholder's roommate owns furniture or personal belongings, those items may require separate coverage under the roommate's own insurance policy, especially if the homeowner's policy explicitly covers only the named insured's property. This helps clarify why ownership, specifically the relationship between the policyholder and the property in question, is the deciding factor in coverage.