EXAMFX - Exam FX Insurance Homeowners Insurance Coverage Questions and Answers

Question 1

A standard HO-3 policy provides 'open peril' coverage for the dwelling and 'named peril' coverage for personal property. Which of the following losses to personal property would typically be covered?

Accepted Answer

Theft of jewelry from the home while the insured is on vacation.

Answer

Damage from a flood caused by a nearby river overflowing.

Answer

Damage to a television caused by a power surge originating from the utility company.

Answer

Loss due to the homeowner intentionally damaging their own furniture.

Question 2

An insured has a Homeowners policy with Coverage A (Dwelling) limit of $300,000. A severe storm causes a large tree to fall, destroying their detached garage. Typically, what is the maximum amount the policy will pay for the garage under Coverage B (Other Structures)?

Accepted Answer

$30,000

Answer

$15,000

Answer

$60,000

Answer

The full replacement cost of the garage.

Question 3

A fire in a home makes it uninhabitable for two months while repairs are being made. The homeowner, who normally spends $1,500 per month on housing and food, has to rent an apartment for $1,200 per month and spends an additional $800 per month on meals. Under Coverage D (Loss of Use), how much will their policy reimburse them for each month?

Accepted Answer

$500

Answer

$2,000

Answer

$1,500

Answer

$800

Question 4

Which of the following situations would be covered under the Personal Liability section (Coverage E) of a standard homeowners insurance policy?

Accepted Answer

The insured's child accidentally breaks a neighbor's window with a baseball.

Answer

A client is injured while visiting the insured's home-based business office.

Answer

The insured intentionally damages a guest's personal property.

Answer

Bodily injury to the named insured's spouse who lives in the home.

Question 5

A standard homeowners policy includes special limits of liability for certain types of personal property. Which of the following categories of items is most likely subject to a special sub-limit for theft?

Accepted Answer

Jewelry and firearms

Answer

Furniture and clothing

Answer

Kitchen appliances

Answer

Lawn and garden equipment

Question 6

All of the following are common exclusions found in an unendorsed homeowners insurance policy EXCEPT:

Accepted Answer

Damage caused by a fire resulting from lightning

Answer

Damage from a flood

Answer

Losses resulting from an earthquake

Answer

Losses due to wear and tear over time

A standard HO-3 policy provides 'open peril' coverage for the dwelling and 'named peril' coverage for personal property.Which of the following losses to personal property would typically be covered?

A standard HO-3 policy provides 'open peril' coverage for the dwelling and 'named peril' coverage for personal property.
Which of the following losses to personal property would typically be covered?