State Farm Homeowner Policy Exam 2024
CoveragezAz-zCORRECTzANSWER-Dwelling
CoveragezBz-zCORRECTzANSWER-PersonalzProperty
CoveragezCz-zCORRECTzANSWER-LosszofzUse
CoveragezAz-zCORRECTzANSWER-iszthezdwellingzandzdwellingzextensions.zThezdwellingziszthezstructure
usedzprincipallyzaszazthezprivatezresidencezandzthezdwellingzextensionszarezother
structureszonzthezresidencezpremiseszseparatedzfromzthezdwellingzbyzclearzspace.
Structureszconnectedztozthezdwellingzbyzonlyzazfence,zutilityzline,zorzsimilar
connectionzarezstillzconsideredztozbezotherzstructures.zExampleszofzdwelling
extensionszwouldzbezdetachedzgarages,zfenceszandzin-groundzswimmingzpools.
ShedszcanzbezeitherzCoveragezAzorzCoveragezBzdependingzonzifztheyzare
permanentlyztozorzotherwisezformingzpartzofzthezrealty.zDwellingzextensionszare
insuredzforz10%zofzthezcoveragezAzlimit.zSo,zifzyourzhomeziszinsuredzforz$100,000
thenzstructureszsuchzaszthezdetachedzgaragezandzin-groundzswimmingzpoolzwould
bezcoveredzforz$10,000.zOnzpagez3zofzthezpolicyz(1.b.)
•zMaterialszandzsupplieszlocatedzonzorzadjacentztozthezresidencezpremises
forzusezinzthezconstruction,zalterationzorzrepairzofzthezdwellingzorzother
structureszonzthezresidencezpremises.
CoveragezBz-zCORRECTzANSWER-iszpersonalzpropertyzownedzorzusedzbyzanzinsuredzwhilezitziszanywhere
inzthezworld.zThiszcoveragezwouldzincludezstructures,zsuchzaszsheds,znot
permanentlyzattachedztozthezrealty.zAszazgeneralzrulezitemszthatzyouzwouldztake
withzyouzifzyouzmovedzwouldzbezcoveragezB.zOnezexceptionzwouldzbezconstruction
supplies.
, CoveragezC:zAdditionalzLivingzExpensez-zCORRECTzANSWER-provideszcoveragezforzupztoz24zmonthszwhen
azlosszinsuredzcauseszthezresidenceztozbecomezuninhabitable.zExample:
Apartmentzrentzwhenzafterzazhurricanezcauseszextensivezwindzdamagezto
anzinsured'szhome.
CoveragezC:zFairzRentalzValuez-zCORRECTzANSWER-provideszcoveragezforzupztoz12zmonthszwhenzyouzrent
azportionzofzyourzhomeztozaztenantzandzazlosszinsuredzcauseszthatzportion
ofzthezhomeztozbezuninhabitable.zExample:zYouzrentzyourzgarage
apartmentztozaztenantzandzitzsustainszheavyztreezdamagezthatzwillzcause
theztenantztozrelocatezforz2zmonthszduringzthezrepair.
CoveragezC:zProhibitedzUsez-zCORRECTzANSWER-provideszadditionalzlivingzexpensezandzfairzrentalzvalue
forzazperiodzofzupztoztwozweekszwhenzazcivilzauthorityzprohibitszyourzuse
ofzthezresidencezpremiseszbecausezofzdirectzdamageztozazneighboring
premisezbyzazlosszinsured.zExample:zThezcivilzauthoritieszinzyourzhome
townzwillznotzallowzyouztozreturnztozyourzhomezforz3zdayszbecausezof
tornadozdamagezinzthezarea.
OpenzPerilz-zCORRECTzANSWER-
mold,zfungus,zorzwetzorzdryzrot;zsettling,zcracking,zshrinking,zbulgingzorzexpansionzofzpavements,zpatios,zf
oundation,zwalls,zfloors,zroofszorzceilings;zearthzmovement-
landslide,zearthquakezsinkhole;zwaterzdamage-includingzfloodzazsurfacezwater
False.zCoveragezCz-zLosszofzUsezhasz3zcoveragesz(pagez4):
•zAdditionalzLivingzExpense
•zFairzRentalzValue
•zProhibitedzUsez-zCORRECTzANSWER-TruezorzFalse:zInzthezFP-
7955zpolicy,zCoveragezCzconsistszofzthreezcoverages:
•zAdditionalzLivingzExpense
CoveragezAz-zCORRECTzANSWER-Dwelling
CoveragezBz-zCORRECTzANSWER-PersonalzProperty
CoveragezCz-zCORRECTzANSWER-LosszofzUse
CoveragezAz-zCORRECTzANSWER-iszthezdwellingzandzdwellingzextensions.zThezdwellingziszthezstructure
usedzprincipallyzaszazthezprivatezresidencezandzthezdwellingzextensionszarezother
structureszonzthezresidencezpremiseszseparatedzfromzthezdwellingzbyzclearzspace.
Structureszconnectedztozthezdwellingzbyzonlyzazfence,zutilityzline,zorzsimilar
connectionzarezstillzconsideredztozbezotherzstructures.zExampleszofzdwelling
extensionszwouldzbezdetachedzgarages,zfenceszandzin-groundzswimmingzpools.
ShedszcanzbezeitherzCoveragezAzorzCoveragezBzdependingzonzifztheyzare
permanentlyztozorzotherwisezformingzpartzofzthezrealty.zDwellingzextensionszare
insuredzforz10%zofzthezcoveragezAzlimit.zSo,zifzyourzhomeziszinsuredzforz$100,000
thenzstructureszsuchzaszthezdetachedzgaragezandzin-groundzswimmingzpoolzwould
bezcoveredzforz$10,000.zOnzpagez3zofzthezpolicyz(1.b.)
•zMaterialszandzsupplieszlocatedzonzorzadjacentztozthezresidencezpremises
forzusezinzthezconstruction,zalterationzorzrepairzofzthezdwellingzorzother
structureszonzthezresidencezpremises.
CoveragezBz-zCORRECTzANSWER-iszpersonalzpropertyzownedzorzusedzbyzanzinsuredzwhilezitziszanywhere
inzthezworld.zThiszcoveragezwouldzincludezstructures,zsuchzaszsheds,znot
permanentlyzattachedztozthezrealty.zAszazgeneralzrulezitemszthatzyouzwouldztake
withzyouzifzyouzmovedzwouldzbezcoveragezB.zOnezexceptionzwouldzbezconstruction
supplies.
, CoveragezC:zAdditionalzLivingzExpensez-zCORRECTzANSWER-provideszcoveragezforzupztoz24zmonthszwhen
azlosszinsuredzcauseszthezresidenceztozbecomezuninhabitable.zExample:
Apartmentzrentzwhenzafterzazhurricanezcauseszextensivezwindzdamagezto
anzinsured'szhome.
CoveragezC:zFairzRentalzValuez-zCORRECTzANSWER-provideszcoveragezforzupztoz12zmonthszwhenzyouzrent
azportionzofzyourzhomeztozaztenantzandzazlosszinsuredzcauseszthatzportion
ofzthezhomeztozbezuninhabitable.zExample:zYouzrentzyourzgarage
apartmentztozaztenantzandzitzsustainszheavyztreezdamagezthatzwillzcause
theztenantztozrelocatezforz2zmonthszduringzthezrepair.
CoveragezC:zProhibitedzUsez-zCORRECTzANSWER-provideszadditionalzlivingzexpensezandzfairzrentalzvalue
forzazperiodzofzupztoztwozweekszwhenzazcivilzauthorityzprohibitszyourzuse
ofzthezresidencezpremiseszbecausezofzdirectzdamageztozazneighboring
premisezbyzazlosszinsured.zExample:zThezcivilzauthoritieszinzyourzhome
townzwillznotzallowzyouztozreturnztozyourzhomezforz3zdayszbecausezof
tornadozdamagezinzthezarea.
OpenzPerilz-zCORRECTzANSWER-
mold,zfungus,zorzwetzorzdryzrot;zsettling,zcracking,zshrinking,zbulgingzorzexpansionzofzpavements,zpatios,zf
oundation,zwalls,zfloors,zroofszorzceilings;zearthzmovement-
landslide,zearthquakezsinkhole;zwaterzdamage-includingzfloodzazsurfacezwater
False.zCoveragezCz-zLosszofzUsezhasz3zcoveragesz(pagez4):
•zAdditionalzLivingzExpense
•zFairzRentalzValue
•zProhibitedzUsez-zCORRECTzANSWER-TruezorzFalse:zInzthezFP-
7955zpolicy,zCoveragezCzconsistszofzthreezcoverages:
•zAdditionalzLivingzExpense
