State Farm Fire Independent Policy Exam
Questions and Answers 2026 (A+ Graded 100%
Verified)
• 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 -✓✓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.
Questions and Answers 2026 (A+ Graded 100%
Verified)
• 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 -✓✓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.
