STATE FARM FIRE INDEPENDENT POLICY ACTUAL EXAM
TEST 2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔The Sheriff's department ordered evacuation of the residence premises due to an
approaching hurricane. To protect their personal property, the insured moved antique
furniture and valuables to a secure storage facility. The insured's family was not allowed
to return to their home for three weeks. The hurricane damaged neighboring homes but
the residence premises did not suffer any damage. The insured's family submitted the
following bills, in addition to their hotel bill. Trailer rental (one way) to haul furniture and
valuables to secure storage: $ 158.50
Wages paid to neighbor's teenage sons to help load/unload furniture: $90.00 Rent
for the secure storage building for three weeks: $75.00
Trailer rental to haul furniture back home after the hurricane: $158.50
Wages paid to neighbor's son to help return furniture to home: $45.00
Hotel bill for three weeks ($500 per week): $1,500.00
Under the HO-3 policy with a $500 - ✔✔1527
✔✔ Select the false statement listed below: In the HO-3 policy, the ALE payments will
be made only for:
Select the single best answer:
A. The shortest time necessary to repair or replace the damaged property, but not to
exceed 24 months.
B. If the insured does not rebuild, the time necessary for the insured to relocate in
permanent living quarters, but not to exceed 24 months.
C. ALE payments can run beyond the expiration of the policy.
D. ALE payments are limited to incurred costs for the shortest of three time frames as
dictated by the policy.
E. ALE payments will not exceed 20% of Coverage A limits. - ✔✔E. ALE payments will
not exceed 20% of Coverage A limits.
✔✔The insured has a HO-3 policy in force. All of the losses are covered except:
Select the single best answer:
A. Shed rented to a tenant, to store furniture
B. Detached garage used to operate a lawnmower repair shop
C. Garage rented to the neighbor to store an antique automobile
D. Basement used as an office for insured's bookkeeping business
E. Garage (attached) rented to tenant to store fishing boat - ✔✔B. Detached garage
used to operate a lawnmower repair shop
,✔✔Jennifer Marco has a HO-3 policy, with a Coverage B limit of $75,000, a $500
deductible, and no Option AI, ID, FA or JF. Which of the following statements is true
concerning her personal property?
Select the single best answer:
A. Coverage for personal property applies for perils listed under Section I - Losses
Insured, Coverage B - Personal Property and Section I - Additional Coverages.
B. Coverage B applies only for items Jennifer owns, while anywhere in the world.
C. The limit of liability for theft loss to jewelry and furs is $1000 or 10% of the Coverage
B limit, whichever is greater.
D. The limit of liability for tornado losses to firearms is $2,500. - ✔✔A. Coverage for
personal property applies for perils listed under Section I - Losses Insured, Coverage B
- Personal Property and Section I - Additional Coverages.
✔✔Under an HO-3 policy, deductibles apply to which of the following type(s) of losses.
Select the single best answer:
A. Credit Card, Bank Fund Transfer Card, Forgery and Counterfeit Money
B. Fire Department Service Charges
C. Rekey locks after keys are stolen
D. Debris Removal Charges - ✔✔B. Fire Department Service Charges
✔✔In the HO-3 policy, Coverage C consists of three coverages:
Additional Living Expense
Fair Rental Value
Property Removed
True or False - ✔✔False its Additional Living expense, Fair rental value and prohibited
use
✔✔The steps in applying the deductible on a HO-3 homeowners policy are:
1.)The deductible is first applied to the covered loss.
2.)Any coverage or special limits are then applied to the covered loss.
3.)The amount payable to the insured will be the greater of the amounts arrived at in
steps 1 and 2.
True or False - ✔✔True
✔✔The definition of an insured includes all of the following except:
Select the single best answer:
A. Person(s) listed on the Declaration Page
, B. Spouse, if a resident of the household
C. Relatives, if residents of the household
D. Any person under the age of 21 in the care of the named insured, resident spouse, or
a resident relative
E. Spouse - ✔✔Spouse
✔✔Joe Smith has a HO-3 policy. He is a carpenter and has collected 100 2"X4" studs
and 30 2"X6" rafters from various job sites. Joe has no specific plans to use the lumber.
The lumber is covered under Coverage A.
True or False - ✔✔False
✔✔Under an HO-3 policy, which of the following would be a Coverage B item?
Select the single best answer:
A. Satellite dish bolted to the eave of the house
B. Free standing gas range
C. Built-in microwave oven
D. Automatic garage door opener
E. Water softener system - ✔✔Free Standing gas range
✔✔Under an HO-3 policy, which of the following would not be a Coverage A item?
Select the single best answer:
A. Automatic lawn sprinkler system
B. Wall to wall carpet attached to the dwelling
C. A new (in the box), built-in microwave oven the insured intends to install in his fishing
cabin.
D. A shed, on a foundation, rented to a neighbor to store the neighbor's boat
E. Materials and supplies to build bookshelves in the basement of the residence
premises and stored in the garage - ✔✔E. Materials and supplies to build bookshelves
in the basement of the residence premises and stored in the garage
✔✔An HO-3 homeowners policy with a $250 deductible is in force and the policy limits
(Coverage A and Coverage B) are adequate to cover this damage. During a severe
windstorm, rain blows through open windows and causes the following damage:
Hardwood floor in the dining room $1,700
Water stains on the drywall $ 220
Water stains on the area rug $125
Antique vase (broken by force of wind) $375
How much should you pay on this loss? All repairs have been made.
Select the single best answer:
TEST 2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔The Sheriff's department ordered evacuation of the residence premises due to an
approaching hurricane. To protect their personal property, the insured moved antique
furniture and valuables to a secure storage facility. The insured's family was not allowed
to return to their home for three weeks. The hurricane damaged neighboring homes but
the residence premises did not suffer any damage. The insured's family submitted the
following bills, in addition to their hotel bill. Trailer rental (one way) to haul furniture and
valuables to secure storage: $ 158.50
Wages paid to neighbor's teenage sons to help load/unload furniture: $90.00 Rent
for the secure storage building for three weeks: $75.00
Trailer rental to haul furniture back home after the hurricane: $158.50
Wages paid to neighbor's son to help return furniture to home: $45.00
Hotel bill for three weeks ($500 per week): $1,500.00
Under the HO-3 policy with a $500 - ✔✔1527
✔✔ Select the false statement listed below: In the HO-3 policy, the ALE payments will
be made only for:
Select the single best answer:
A. The shortest time necessary to repair or replace the damaged property, but not to
exceed 24 months.
B. If the insured does not rebuild, the time necessary for the insured to relocate in
permanent living quarters, but not to exceed 24 months.
C. ALE payments can run beyond the expiration of the policy.
D. ALE payments are limited to incurred costs for the shortest of three time frames as
dictated by the policy.
E. ALE payments will not exceed 20% of Coverage A limits. - ✔✔E. ALE payments will
not exceed 20% of Coverage A limits.
✔✔The insured has a HO-3 policy in force. All of the losses are covered except:
Select the single best answer:
A. Shed rented to a tenant, to store furniture
B. Detached garage used to operate a lawnmower repair shop
C. Garage rented to the neighbor to store an antique automobile
D. Basement used as an office for insured's bookkeeping business
E. Garage (attached) rented to tenant to store fishing boat - ✔✔B. Detached garage
used to operate a lawnmower repair shop
,✔✔Jennifer Marco has a HO-3 policy, with a Coverage B limit of $75,000, a $500
deductible, and no Option AI, ID, FA or JF. Which of the following statements is true
concerning her personal property?
Select the single best answer:
A. Coverage for personal property applies for perils listed under Section I - Losses
Insured, Coverage B - Personal Property and Section I - Additional Coverages.
B. Coverage B applies only for items Jennifer owns, while anywhere in the world.
C. The limit of liability for theft loss to jewelry and furs is $1000 or 10% of the Coverage
B limit, whichever is greater.
D. The limit of liability for tornado losses to firearms is $2,500. - ✔✔A. Coverage for
personal property applies for perils listed under Section I - Losses Insured, Coverage B
- Personal Property and Section I - Additional Coverages.
✔✔Under an HO-3 policy, deductibles apply to which of the following type(s) of losses.
Select the single best answer:
A. Credit Card, Bank Fund Transfer Card, Forgery and Counterfeit Money
B. Fire Department Service Charges
C. Rekey locks after keys are stolen
D. Debris Removal Charges - ✔✔B. Fire Department Service Charges
✔✔In the HO-3 policy, Coverage C consists of three coverages:
Additional Living Expense
Fair Rental Value
Property Removed
True or False - ✔✔False its Additional Living expense, Fair rental value and prohibited
use
✔✔The steps in applying the deductible on a HO-3 homeowners policy are:
1.)The deductible is first applied to the covered loss.
2.)Any coverage or special limits are then applied to the covered loss.
3.)The amount payable to the insured will be the greater of the amounts arrived at in
steps 1 and 2.
True or False - ✔✔True
✔✔The definition of an insured includes all of the following except:
Select the single best answer:
A. Person(s) listed on the Declaration Page
, B. Spouse, if a resident of the household
C. Relatives, if residents of the household
D. Any person under the age of 21 in the care of the named insured, resident spouse, or
a resident relative
E. Spouse - ✔✔Spouse
✔✔Joe Smith has a HO-3 policy. He is a carpenter and has collected 100 2"X4" studs
and 30 2"X6" rafters from various job sites. Joe has no specific plans to use the lumber.
The lumber is covered under Coverage A.
True or False - ✔✔False
✔✔Under an HO-3 policy, which of the following would be a Coverage B item?
Select the single best answer:
A. Satellite dish bolted to the eave of the house
B. Free standing gas range
C. Built-in microwave oven
D. Automatic garage door opener
E. Water softener system - ✔✔Free Standing gas range
✔✔Under an HO-3 policy, which of the following would not be a Coverage A item?
Select the single best answer:
A. Automatic lawn sprinkler system
B. Wall to wall carpet attached to the dwelling
C. A new (in the box), built-in microwave oven the insured intends to install in his fishing
cabin.
D. A shed, on a foundation, rented to a neighbor to store the neighbor's boat
E. Materials and supplies to build bookshelves in the basement of the residence
premises and stored in the garage - ✔✔E. Materials and supplies to build bookshelves
in the basement of the residence premises and stored in the garage
✔✔An HO-3 homeowners policy with a $250 deductible is in force and the policy limits
(Coverage A and Coverage B) are adequate to cover this damage. During a severe
windstorm, rain blows through open windows and causes the following damage:
Hardwood floor in the dining room $1,700
Water stains on the drywall $ 220
Water stains on the area rug $125
Antique vase (broken by force of wind) $375
How much should you pay on this loss? All repairs have been made.
Select the single best answer:
