EXAMFX Homeowners Insurance Coverage 2

Question 1

Under a standard homeowners policy, which of the following losses to personal property would be covered under Coverage C?

Accepted Answer

Theft of jewelry from the insured's vehicle

Answer

Earthquake damage to a laptop inside the home

Answer

Flooding of the insured's basement

Answer

Wear and tear on furniture over time

Question 2

A homeowner's detached garage is destroyed by a covered peril. Under which coverage would this loss be paid?

Accepted Answer

Coverage B – Other Structures

Answer

Coverage A – Dwelling

Answer

Coverage C – Personal Property

Answer

Coverage D – Loss of Use

Question 3

Which homeowners form provides the BROADEST coverage for personal property?

Accepted Answer

HO-5 (Comprehensive Form)

Answer

HO-1 (Basic Form)

Answer

HO-2 (Broad Form)

Answer

HO-3 (Special Form)

Question 4

An insured rents out a portion of their home to a tenant. How does this affect Coverage B (Other Structures)?

Accepted Answer

Structures rented to others are excluded from Coverage B

Answer

Coverage B limits double automatically

Answer

Coverage B does not apply to any structures used for rental

Answer

Coverage B is unaffected regardless of rental use

Question 5

Under the HO-3 policy, Coverage A (Dwelling) is written on what basis?

Accepted Answer

Open perils (all-risk)

Answer

Named perils only

Answer

Actual cash value

Answer

Replacement cost minus depreciation

Question 6

What is the standard Coverage B limit expressed as a percentage of Coverage A in a homeowners policy?

Accepted Answer

10%

Answer

5%

Answer

20%

Answer

50%

Question 7

Which of the following is an example of an Additional Coverage included in a standard homeowners policy at no extra charge?

Accepted Answer

Debris removal following a covered loss

Answer

Earthquake coverage

Answer

Flood coverage

Answer

Scheduled personal property coverage