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

Coverage C (personal property) covers theft of personal property including items stolen from a vehicle, subject to special limits for certain categories.

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 B (Other Structures) covers structures on the residence premises that are separated from the dwelling, such as detached garages, fences, and sheds.

Question 3

Which homeowners form provides the BROADEST coverage for personal property?

Accepted Answer

HO-5 (Comprehensive Form)

Answer

The HO-5 (Comprehensive Form) covers both the dwelling and personal property on an open-perils basis, making it the broadest homeowners form available.

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 excludes structures rented or held for rental to any person who is not a tenant of the dwelling; if the garage is rented out to a non-tenant, it is excluded.

Question 5

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

Accepted Answer

Open perils (all-risk)

Answer

Under the HO-3, Coverage A covers the dwelling on an open-perils (all-risk) basis, meaning all causes of loss are covered except those specifically excluded.

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Homeowners Insurance Coverage 2