Which of the following is covered for liability under an HO-4?

The coverage for liability under an HO-4, which is specifically designed for renters insurance, extends to certain personal property and personal liability situations. The correct answer highlights that borrowed property, such as a 125hp outboard boat, is covered under the liability section of an HO-4 policy.

This coverage typically applies to property that the insured does not own but for which they can be held liable, such as when borrowing a friend's boat. The liability coverage in the HO-4 form includes coverage for bodily injury and property damage for which the insured is responsible, meaning if an incident occurs while using the borrowed boat, the policy would provide protection against claims.

Other choices reflect owned or rented vessels that may have different coverage implications. Owned items, such as the waverunner or the 40ft sailboat, are generally excluded from liability coverage under an HO-4, as the policy does not insure the insured's personally-owned boats or watercraft. The rented inboard boat, while also not held in ownership, generally does not fall under the coverage typically provided by an HO-4 policy, which primarily addresses personal property without extending to other types of watercraft. Thus, liability coverage for borrowed items like the outboard boat is the only one clearly