What type of insurance is referred to as a "unit owner's form" in homeowners policies?

• A. Comprehensive general liability insurance
• B. Named-peril homeowners policy
• C. All-risk property insurance
• D. Basic property coverage

Answer: (B)

The term "unit owner's form" is used to describe a specific type of homeowners insurance policy that is particularly designed for individuals who own a unit in a condominium or cooperative. This form typically provides coverage for personal property and portions of the building that the unit owner is responsible for, such as the interior of the unit, fixtures, and sometimes additional liability coverage related to the unit.

The named-peril homeowners policy specifically covers only the perils that are explicitly listed in the policy. This approach aligns with what is included in a unit owner's form, which often only insures against specific risks, such as fire, theft, and vandalism. The unit owner's form is differentiated from a comprehensive or all-risk policy, which would provide broader coverage against any unforeseen perils unless specifically excluded.

Thus, the classification of a "unit owner's form" as a named-peril homeowners policy is accurate, as it details specific risks and offers tailored protection for condominium owners.