4_ HO-3 PERILS INSURED AGAINST
AND EXCLUSIONS QUESTIONS AND
CORRECT DETAILED ANSWERS
GRADED A+
, Describe the perils Insured against for Coverage A - ANSWERcoverage provided on a
special form basis
Describe the perils Insured against for Coverage B - ANSWERcoverage provided on a
special form basis
Describe the perils Insured against for Coverage C - ANSWERcoverage provided on a
named perils basis
Describe the perils Insured against for Coverage D - ANSWERcoverage only applies
when covered losses occur
Describe the perils Insured against for Additional Coverages - ANSWERcoverage
applies when covered losses occur or in other cases which have been individually
described
How are Coverage A & B perils determined? - ANSWER"We insure against direct
physical loss to property described in Coverages A & B"
next is a list of excluded perils
How do insurers develop limited coverage? - ANSWERcreate a general exclusion and
then add back in specific coverage as an exception
List / Describe the Excluded Perils Under Coverage A & B - ANSWER*Collapse* -
excluded as a cause of loss, it is covered if it is a direct result of a covered cause of loss
*Freezing of Pipes and Hoses* - includes plumbing, air conditions, sprinkler system,
household appliances. If insured fails to take reasonable precautions to prevent pipes
and hoses from freezing and bursting, coverage excludes any resulting damage
*Freezing, Thawing, Pressure, or Weight of Water or Ice*
*Theft of construction materials* - theft in or to a dwelling under construction or of
construction materials and supplies is excluded until the dwelling is finished and
occupied.
*vandalism to vacant dwellings* - excluded if dwelling has been vacant for more than 60
consecutive days. Also excludes ensuing losses such as fire
*mold, fungus, wet rot* - excluded unless hidden and results from an accidental leak
(unless leak is from sump pump or roof drain, then still excluded)
AND EXCLUSIONS QUESTIONS AND
CORRECT DETAILED ANSWERS
GRADED A+
, Describe the perils Insured against for Coverage A - ANSWERcoverage provided on a
special form basis
Describe the perils Insured against for Coverage B - ANSWERcoverage provided on a
special form basis
Describe the perils Insured against for Coverage C - ANSWERcoverage provided on a
named perils basis
Describe the perils Insured against for Coverage D - ANSWERcoverage only applies
when covered losses occur
Describe the perils Insured against for Additional Coverages - ANSWERcoverage
applies when covered losses occur or in other cases which have been individually
described
How are Coverage A & B perils determined? - ANSWER"We insure against direct
physical loss to property described in Coverages A & B"
next is a list of excluded perils
How do insurers develop limited coverage? - ANSWERcreate a general exclusion and
then add back in specific coverage as an exception
List / Describe the Excluded Perils Under Coverage A & B - ANSWER*Collapse* -
excluded as a cause of loss, it is covered if it is a direct result of a covered cause of loss
*Freezing of Pipes and Hoses* - includes plumbing, air conditions, sprinkler system,
household appliances. If insured fails to take reasonable precautions to prevent pipes
and hoses from freezing and bursting, coverage excludes any resulting damage
*Freezing, Thawing, Pressure, or Weight of Water or Ice*
*Theft of construction materials* - theft in or to a dwelling under construction or of
construction materials and supplies is excluded until the dwelling is finished and
occupied.
*vandalism to vacant dwellings* - excluded if dwelling has been vacant for more than 60
consecutive days. Also excludes ensuing losses such as fire
*mold, fungus, wet rot* - excluded unless hidden and results from an accidental leak
(unless leak is from sump pump or roof drain, then still excluded)
