4 HO-3 Perils Insured Against and Exclusions Quiz

The perils covered for Coverage C—Personal Property of the HO-3 policy differ significantly from the special form coverage for Coverage A and B. Damage from which one of the following events would be covered under Coverage A but not for Coverage C? Select one: A. A chandelier accidently fell from the ceiling and damaged the dining room floor, the dining room table, and a centerpiece. B. Due to an ice dam, water enters a home causing damage to the home and furniture inside. C. A pipe froze and leaked causing damage to the floor and personal property while the homeowners were asleep. D. Due to a power surge the home heat pump and a window air conditioner suffered electrical damage.

A. A chandelier accidently fell from the ceiling and damaged the dining room floor, the dining room table, and a centerpiece. A chandelier accidently falling from the ceiling and damaging the dining room floor, the dining room table, and a centerpiece would be covered for the damage to the floor but not the table or centerpiece.

There are three exclusions in the HO-3 policy that apply only to Coverages A and B in addition to the basic nine exclusions in Section I—Exclusions. These three exclusions are weather, Select one: A. Acts or decisions of any person, group, organization, or governmental body, and faulty workmanship. B. Governmental actions, and faulty workmanship. C. Acts or decisions of any person, group, organization, or governmental body, and intentional loss. D. Ordinance or law, and faulty workmanship.

A. Acts or decisions of any person, group, organization, or governmental body, and faulty workmanship.

Which one of the following is an insured peril under Coverage C of an unendorsed HO-3 policy? Select one: A. Damage to furniture from sudden release of soot from the furnace B. Damage to the outside awning from the weight of snow and ice C. Damage to china and crystal from earthquake tremors D. Damage to the kitchen table from the ceiling fan that fell on it

A. Damage to furniture from sudden release of soot from the furnace Damage to furniture from sudden release of soot from the furnace is an insured peril under Coverage C of an unendorsed HO-3.

Which one of the following losses is covered under Section I of the HO-3 policy? Select one: A. Damage to the insured's flooring due to a sudden leak in the insured's dishwasher B. Damage to the exterior of the insured's house due to environmental pollution C. Injury to the insured's dog D. Wear and tear damage to the insured's walls

A. Damage to the insured's flooring due to a sudden leak in the insured's dishwasher CorrectCorrect. The HO-3 provides coverage for sudden and accidental discharge of water, like water flowing suddenly from a dishwasher leak.

Property described in Coverages A, B, and C of an HO-3 policy that is destroyed, confiscated, or seized by order of any governmental or public authority is Select one: A. Excluded. B. Covered. C. Covered, but subject to a special sublimit. D. Covered in excess of a large deductible.

A. Excluded.

The water damage exclusion in the HO-3 policy eliminates coverage for losses caused by Select one: A. Flood, surface water, waves, and water or water-borne material such as sewage that backs up through sewers and drains. B. Flood, surface water, and waves, but not water-borne material such as sewage that backs up through sewers and drains. C. Flood caused by heavy rains, but not waves or tidal flooding. D. Waves and tidal flooding, but not flood caused by heavy rains.

A. Flood, surface water, waves, and water or water-borne material such as sewage that backs up through sewers and drains.

Under the HO-3 policy, which one of the following perils is excluded for Coverages A and B only? Select one: A. Weather B. Earth movement C. Neglect D. Government actions

A. Weather CorrectCorrect. Weather is excluded for Coverages A and B only in the HO-3 policy.

The nine exclusions listed in Section I—Exclusions of the HO-3 policy apply to which one of the following coverages? Select one: A. Coverages A, B, and D only B. Coverages A, B, and C C. Coverage C only D. Coverages A and B only

B. Coverages A, B, and C

A windstorm causes a tree on the insured's premises to fall, breaking the electrical lines that enter the house. The loss of electrical power causes the food in the freezer to thaw and spoil. This loss is Select one: A. Covered because damage resulting from loss of electrical power is covered. B. Covered because it was caused by a covered peril on the residence premises. C. Not covered because damage resulting from loss of electrical power is excluded. D. Not covered because food is not considered personal property.

B. Covered because it was caused by a covered peril on the residence premises. CorrectCorrect. This loss is covered because it was caused by a covered peril on the residence premises.

Under an HO-3 policy, Section I—Exclusions contains an additional three exclusions that apply only to Coverage A—Dwelling and Coverage B—Other Structures. These exclusions include all of the following, EXCEPT: Select one: A. Weather B. Fraud C. Acts or decisions D. Damage that results from faulty construction, planning, or materials

B. Fraud

Which one of the following is an excluded peril under Section I—Coverages A and B of the HO-3 policy? Select one: A. Unintentional loss B. Settling of the dwelling C. Hail D. Accidental leak of water from plumbing

B. Settling of the dwelling CorrectCorrect. An excluded peril under Section I of the HO-3 policy is settling of the dwelling.

Which one of the following is an excluded peril under Section I—Coverages A and B of the HO-3 policy? Select one: A. Volcanic eruption B. Theft of construction materials C. Aircraft D. Accidental leak of water from plumbing

B. Theft of construction materials CorrectCorrect. An excluded peril under Section I of the HO-3 policy is theft of construction materials.

Is mold damage to the dwelling covered by an HO-3 policy? Select one: A. Yes, if resulting from a sump pump malfunction. B. Yes, if hidden and it results from an accidental leak of water from a plumbing, heating, or air conditioning system. C. Yes, if resulting from natural deterioration and wet rot. D. No forms of mold, fungus, or wet rot are covered.

B. Yes, if hidden and it results from an accidental leak of water from a plumbing, heating, or air conditioning system. CorrectCorrect. Yes, if hidden and it results from an accidental leak of water from a plumbing, heating, or air conditioning system.

Coverages A and B of the unendorsed HO-3 policy insure against direct physical loss to property described followed by a list of excluded perils. Which one of the following is true regarding the excluded perils that apply to Coverage A and B? Select one: A. Freezing of plumbing and heating systems is excluded at all times unless endorsed. B. Vandalism damage is excluded if it occurs anytime the property is not occupied. C. Collapse is excluded as a cause of loss but is covered if it results from other causes. D. Freezing damage to external property is excluded unless reasonable precautions are taken.

C. Collapse is excluded as a cause of loss but is covered if it results from other causes.

Under Coverage C—Personal Property of the homeowners policy, which one of the following statements is true? Select one: A. Loss caused by smoke from agricultural smudging or industrial operations is covered under Coverage C. B. Theft is included under Coverage C for watercraft, including its furnishings and equipment, away from the residence premises. C. Windstorm or hail damage to personal property inside a residence is not covered unless the building is first damaged. D. Theft from a building under construction and theft of construction materials are covered under Coverage C.

C. Windstorm or hail damage to personal property inside a residence is not covered unless the building is first damaged.

Jerry who lives in a rural area has experienced several animal-related losses to his home. Which one of the following losses would be covered under Jerry's HO-3 policy? Select one: A. A bird built a nest in the wall, causing damage to the drywall. B. Jerry's dog chewed the leg of his coffee table, destroying the piece of furniture. C. Jerry's cat brought in a squirrel that got away and later chewed electrical wiring, causing damage to Jerry's home. D. A deer ran through Jerry's glass door and destroyed the door and other property.

D. A deer ran through Jerry's glass door and destroyed the door and other property. CorrectCorrect. The HO-3 policy excludes damage caused by animals that the insured owns or keeps, or by birds, vermin, rodents, or insects. A deer that ran through Jerry's glass door and destroyed the door and other property would be covered.

Mary and Bob have their house insured under an HO-3 policy. Bob intentionally sets fire to their home. Mary was not involved in the arson. The HO-3 policy will Select one: A. Cover the loss if Mary submits the claim, but Bob is not entitled to coverage. B. Cover the loss because fire is an insured peril. C. Exclude the loss under the Neglect exclusion. D. Exclude the loss under the Intentional Loss exclusion.

D. Exclude the loss under the Intentional Loss exclusion. CorrectCorrect. The HO-3 policy will exclude the loss under the Intentional Loss exclusion. Under the Intentional Loss exclusion, coverage for any loss arising out of an act that any insured commits or conspires to commit with the intent to cause a loss is excluded.

Steve owns a home insured under the HO-3 policy. While Steve was painting his living room, he accidentally dropped an open paint can from his ladder which spilled onto his wall-to-wall carpet and sofa. The carpet and sofa were damaged beyond repair and needed to be replaced. What damage to Steve's property is covered under his HO-3? Select one: A. Damage to the carpet and sofa are both covered. B. The damage to the sofa is covered; the damage to the carpet is not covered. C. None of the damage is covered. D. The damage to the carpet is covered; the damage to the sofa is not covered.

D. The damage to the carpet is covered; the damage to the sofa is not covered.

In Section I—Exclusions of the HO-3 policy, there are three additional exclusions (weather, acts or decisions, and faulty workmanship) that apply only to Coverage A—Dwelling and Coverage B—Other Structures. Which one of the following statements is true regarding these exclusions? Select one: A. Weather is an excluded peril only if it contributes to a covered peril. B. The HO-3 covers losses directly from these perils unless excluded elsewhere in the policy. C. The HO-3 excludes ensuing losses resulting from these three perils. D. Weather is an excluded peril only if it contributes to a previously excluded peril.

D. Weather is an excluded peril only if it contributes to a previously excluded peril.