DC Homeowners Insurance 2

Question 1

Which section of a standard homeowners policy (HO-3) covers the policyholder's personal property worldwide?

Accepted Answer

Coverage C – Personal Property

Answer

Coverage C in the HO-3 form covers the insured's personal property anywhere in the world, subject to policy limits.

Question 2

An HO-3 policy's Coverage A covers the dwelling on an open-perils basis. What does 'open perils' mean?

Accepted Answer

All perils except those specifically excluded are covered

Answer

Open perils (also called all-risk) means coverage applies to all causes of loss except those specifically excluded in the policy.

Question 3

Under a standard homeowners policy, which coverage pays for additional living expenses if the home becomes uninhabitable due to a covered loss?

Accepted Answer

Coverage D

Answer

Coverage D – Loss of Use pays for additional living expenses (hotel, meals) when the insured cannot live in the home because of a covered peril.

Question 4

What DC-specific peril is NOT covered under a standard homeowners policy and typically requires a separate federal policy?

Accepted Answer

Flood

Answer

Flood damage is excluded from standard homeowners policies and is typically covered through the National Flood Insurance Program (NFIP).

Question 5

Which homeowners policy form provides the broadest coverage and is typically used for owner-occupied dwellings?

Accepted Answer

HO-3 (Special Form)

Answer

HO-3 is the most commonly sold homeowners policy and provides the broadest coverage—open perils on the dwelling and named perils on personal property.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC Homeowners Insurance 2