STATE FARM FIRE INDEPENDENT POLICY EXAM 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔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:
A. $ 0
B. $1,920
, C. $2,420
D. $2,170
E. $2,045 - ✔✔2170
✔✔If a picture falls from a wall and damages an expensive statue, under the HO-3
coverage for the statue would:
Select the single best answer:
A. Apply under the falling object peril
B. Not apply, not an insured peril
C. Apply under the collapse peril
D. Not apply since it should have been insured under a personal articles policy
E. None of the above - ✔✔not apply, not an insured peril
✔✔Bill Smith constructed an awning beside his detached garage, under which he stores
his small fishing boat. He screwed the framing of the awning to the fascia of the garage
and supported the other side with posts set in concrete. Since the awning has no
foundation, it is not considered a Coverage A item.
True or False - ✔✔False
✔✔Mike and Jennifer Reed have an HO -3 policy in force with $250 deductible.
Lightning struck the insured's house, damaging the house and the contents. Mike is a
policeman and operates a engine repair shop in a shed on the insured premises.
Jennifer is a sales representative and often has samples and merchandise at the house.
The following items where listed on the personal property inventory forms submitted
after the loss.
Cash in Mike's billfold $35.00
Cash in Jennifer's purse $160.00
Change in piggy bank $25.00
Hand tools used in Mike's business $780.00
Jennifer's sales samples $320.00
Mike's police uniform $375.00
4 hunting rifles $1,820.00
3 shotguns $870.00
Use the information listed above to answer the following question. How much would you
pay for the money listed in this loss?
Select the single best answer:
A. $200
B. $220
C. $195
D. $185
QUESTIONS WITH ANSWERS GRADED A+
✔✔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:
A. $ 0
B. $1,920
, C. $2,420
D. $2,170
E. $2,045 - ✔✔2170
✔✔If a picture falls from a wall and damages an expensive statue, under the HO-3
coverage for the statue would:
Select the single best answer:
A. Apply under the falling object peril
B. Not apply, not an insured peril
C. Apply under the collapse peril
D. Not apply since it should have been insured under a personal articles policy
E. None of the above - ✔✔not apply, not an insured peril
✔✔Bill Smith constructed an awning beside his detached garage, under which he stores
his small fishing boat. He screwed the framing of the awning to the fascia of the garage
and supported the other side with posts set in concrete. Since the awning has no
foundation, it is not considered a Coverage A item.
True or False - ✔✔False
✔✔Mike and Jennifer Reed have an HO -3 policy in force with $250 deductible.
Lightning struck the insured's house, damaging the house and the contents. Mike is a
policeman and operates a engine repair shop in a shed on the insured premises.
Jennifer is a sales representative and often has samples and merchandise at the house.
The following items where listed on the personal property inventory forms submitted
after the loss.
Cash in Mike's billfold $35.00
Cash in Jennifer's purse $160.00
Change in piggy bank $25.00
Hand tools used in Mike's business $780.00
Jennifer's sales samples $320.00
Mike's police uniform $375.00
4 hunting rifles $1,820.00
3 shotguns $870.00
Use the information listed above to answer the following question. How much would you
pay for the money listed in this loss?
Select the single best answer:
A. $200
B. $220
C. $195
D. $185
