STATE FARM HOMEOWNER POLICY
FP-7955 DEDUCIBLE PRACTICE
EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ What is the insuring agreement.
Answer: is the part of the policy structure that describes the insured perils
and the method of indemnification
◍ Option ID is typically 20% of dwelling limits..
Answer: TrueComments: Typically, Option ID is 20% of Coverage A-
Dwelling limits but more can be purchased. The Option ID amount will be
stated in declarations.
◍ What is absolute liability.
Answer: Any conduct that is inherently dangerous imposes absolute
liability. the claimant does not have to prove anything
◍ Mr. Smith has a Homeowners FP-7955 policy on his primary residence. He
takes his family to their fish camp for the weekend. The fish camp is not
listed on the declarations page. They pack food, clothes, bedding, fishing
equipment, toys for the kids, and tools to make minor repairs to the cabin
while they are there. A tornado causes damage to the cabin and contents.
Select the true statements below..
Answer: The food, clothing, bedding, fishing equipment, toys and tools are
covered on the primary residence policy up to policy limits for Coverage
BComments: There are two true statements: The items normally situated at
the fish camp (furniture and appliances are covered under the primary
residence policy but for only 10% of Coverage B limits or $1000, whichever
is greater. The items taken to the fish camp temporarily are covered under
, the primary residence policy up to Coverage B policy limits.The furniture
and appliances at the fish camp are covered on the primary residence policy
but they are limited to 10% of Coverage B limits or $1,000, whichever is
greaterComments: There are two true statements: The items normally
situated at the fish camp (furniture and appliances are covered under the
primary residence policy but for only 10% of Coverage B limits or $1000,
whichever is greater. The items taken to the fish camp temporarily are
covered under the primary residence policy up to Coverage B policy limits.
◍ When a loss insured causes the residence premises to become uninhabitable,
Additional Living Expense pays the necessary increase in the cost of living
for the shortest of: a) the time required to repair or replace the premises; b)
the time required to relocate; or c) 24 months..
Answer: TrueComments: The coverage trigger for ALE is a loss insured
occurring to the residence premises and rendering it uninhabitable. The
policy pays the shorter of these time limits: The time to repair or replace
The time to settle elsewhere; or 24 months Refer to Sect. 1 Coverages,
Coverage C - Loss of Use, paragraph 1 (pg. 4).
◍ what is a notice of claim.
Answer: a form or statement from an insured to an insurer, informing the
insurer that events leading to a possible claim have occurred
◍ A clock falls off a wall and damages a piano. Coverage for the piano
would:.
Answer: Not apply since the cause of loss is not a named perilComments: Of
the 16 named perils applying to Coverage B - Personal Property, only the
falling object peril comes close to providing coverage for this loss; however,
in order for coverage to apply to personal property inside a building, the
falling object must first damage the exterior roof or wall of the building. The
clock falling off a wall onto another item does not meet this policy
provision. Refer to Sect. I, Losses Insured, Coverage B - Personal Property,
paragraph 10 (pg. 8).
◍ Select the items that would not qualify as a Coverage A structure..
, Answer: A stand alone patio cover with no foundation or other permanent
attachmentComments: To qualify as Coverage A property, the structure
must be attached to the dwelling, or, permanently attached to or otherwise
forming a part of the realty. Neither the storage shed on blocks or the patio
cover with no attachment or foundation meet this policy provision. Refer to
Sect. I Coverages, Coverage A - Dwelling, paragraph 1 and 2 (pg. 3) .A
storage shed on blocksComments: To qualify as Coverage A property, the
structure must be attached to the dwelling, or, permanently attached to or
otherwise forming a part of the realty. Neither the storage shed on blocks or
the patio cover with no attachment or foundation meet this policy provision.
Refer to Sect. I Coverages, Coverage A - Dwelling, paragraph 1 and 2 (pg.
3) .
◍ The dwelling is located on the east coastline. Due to an approaching
hurricane, the policyholder packs up all belongings and moves them inland
on September 29th. On November 5th, all belongings are destroyed when
torrential rains flood the area where the storage facility is located. The
damaged belongings are covered..
Answer: FalseComments: Property removed to protect it from an insured
loss is covered for accidental direct physical loss while it is being removed
and for 30 days while removed. In this scenario, the property was damaged
outside the 30 day coverage window so no coverage applies. Refer to Sect. 1
Coverages, Additional Coverages, paragraph 5 (pg. 5).
◍ All of the following are covered except:.
Answer: B. Detached garage where a tenant rents and lives in the efficiency
apartment above.D. Detached garage where a named insured stores tools
and supplies used in their home repair businessANSWER: E. B and
D-Comments: All are covered except the detached garage rented as an
efficiency apartment and the detached garage used to store tools and
supplies for business use. No dwelling extension can be used for business or
rented to anyone except a tenant of the dwelling unless used for private
garage purposes. Refer to Sect. I Coverages, Coverage A - Dwelling,
paragraph 2 (pg. 3).
FP-7955 DEDUCIBLE PRACTICE
EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ What is the insuring agreement.
Answer: is the part of the policy structure that describes the insured perils
and the method of indemnification
◍ Option ID is typically 20% of dwelling limits..
Answer: TrueComments: Typically, Option ID is 20% of Coverage A-
Dwelling limits but more can be purchased. The Option ID amount will be
stated in declarations.
◍ What is absolute liability.
Answer: Any conduct that is inherently dangerous imposes absolute
liability. the claimant does not have to prove anything
◍ Mr. Smith has a Homeowners FP-7955 policy on his primary residence. He
takes his family to their fish camp for the weekend. The fish camp is not
listed on the declarations page. They pack food, clothes, bedding, fishing
equipment, toys for the kids, and tools to make minor repairs to the cabin
while they are there. A tornado causes damage to the cabin and contents.
Select the true statements below..
Answer: The food, clothing, bedding, fishing equipment, toys and tools are
covered on the primary residence policy up to policy limits for Coverage
BComments: There are two true statements: The items normally situated at
the fish camp (furniture and appliances are covered under the primary
residence policy but for only 10% of Coverage B limits or $1000, whichever
is greater. The items taken to the fish camp temporarily are covered under
, the primary residence policy up to Coverage B policy limits.The furniture
and appliances at the fish camp are covered on the primary residence policy
but they are limited to 10% of Coverage B limits or $1,000, whichever is
greaterComments: There are two true statements: The items normally
situated at the fish camp (furniture and appliances are covered under the
primary residence policy but for only 10% of Coverage B limits or $1000,
whichever is greater. The items taken to the fish camp temporarily are
covered under the primary residence policy up to Coverage B policy limits.
◍ When a loss insured causes the residence premises to become uninhabitable,
Additional Living Expense pays the necessary increase in the cost of living
for the shortest of: a) the time required to repair or replace the premises; b)
the time required to relocate; or c) 24 months..
Answer: TrueComments: The coverage trigger for ALE is a loss insured
occurring to the residence premises and rendering it uninhabitable. The
policy pays the shorter of these time limits: The time to repair or replace
The time to settle elsewhere; or 24 months Refer to Sect. 1 Coverages,
Coverage C - Loss of Use, paragraph 1 (pg. 4).
◍ what is a notice of claim.
Answer: a form or statement from an insured to an insurer, informing the
insurer that events leading to a possible claim have occurred
◍ A clock falls off a wall and damages a piano. Coverage for the piano
would:.
Answer: Not apply since the cause of loss is not a named perilComments: Of
the 16 named perils applying to Coverage B - Personal Property, only the
falling object peril comes close to providing coverage for this loss; however,
in order for coverage to apply to personal property inside a building, the
falling object must first damage the exterior roof or wall of the building. The
clock falling off a wall onto another item does not meet this policy
provision. Refer to Sect. I, Losses Insured, Coverage B - Personal Property,
paragraph 10 (pg. 8).
◍ Select the items that would not qualify as a Coverage A structure..
, Answer: A stand alone patio cover with no foundation or other permanent
attachmentComments: To qualify as Coverage A property, the structure
must be attached to the dwelling, or, permanently attached to or otherwise
forming a part of the realty. Neither the storage shed on blocks or the patio
cover with no attachment or foundation meet this policy provision. Refer to
Sect. I Coverages, Coverage A - Dwelling, paragraph 1 and 2 (pg. 3) .A
storage shed on blocksComments: To qualify as Coverage A property, the
structure must be attached to the dwelling, or, permanently attached to or
otherwise forming a part of the realty. Neither the storage shed on blocks or
the patio cover with no attachment or foundation meet this policy provision.
Refer to Sect. I Coverages, Coverage A - Dwelling, paragraph 1 and 2 (pg.
3) .
◍ The dwelling is located on the east coastline. Due to an approaching
hurricane, the policyholder packs up all belongings and moves them inland
on September 29th. On November 5th, all belongings are destroyed when
torrential rains flood the area where the storage facility is located. The
damaged belongings are covered..
Answer: FalseComments: Property removed to protect it from an insured
loss is covered for accidental direct physical loss while it is being removed
and for 30 days while removed. In this scenario, the property was damaged
outside the 30 day coverage window so no coverage applies. Refer to Sect. 1
Coverages, Additional Coverages, paragraph 5 (pg. 5).
◍ All of the following are covered except:.
Answer: B. Detached garage where a tenant rents and lives in the efficiency
apartment above.D. Detached garage where a named insured stores tools
and supplies used in their home repair businessANSWER: E. B and
D-Comments: All are covered except the detached garage rented as an
efficiency apartment and the detached garage used to store tools and
supplies for business use. No dwelling extension can be used for business or
rented to anyone except a tenant of the dwelling unless used for private
garage purposes. Refer to Sect. I Coverages, Coverage A - Dwelling,
paragraph 2 (pg. 3).
