Home Insurance and Coverage Quiz

Mason owns a home insured under an HO-3 policy. One day, he discovers that someone has spray-painted graffiti on his garage door. Which of the following is a covered peril under his HO-3 policy?

• Vandalism

• War

• Neglect

• Ordinance of law

Answer explanation

Vandalism is a covered peril under an HO-3 policy, which includes damage caused by intentional acts like graffiti. The other options, such as war and neglect, are not covered.

Daniel owns a home insured under an HO-3 policy. After a severe storm, his basement floods, causing significant water damage. Which peril that caused the damage is excluded from his HO-3 policy?

• Water damage from flooding

• Theft

• Windstorm or hail

• Fire or lightning

Answer explanation

The HO-3 policy excludes water damage from flooding, which is the cause of the basement damage. Other perils like theft, windstorm, or fire are typically covered.

David has recently purchased a mobile home and wants to ensure it is properly insured. Which type of insurance is designed specifically for mobile homes?

• HO-8

• HO-5

• HO-3

• HO-7

Answer explanation

The HO-7 policy is specifically designed for mobile homes, providing coverage tailored to their unique needs. Other options like HO-3 and HO-5 are for standard homes, while HO-8 is for older homes.

Michael is shopping for insurance for his single-family home and wants the highest level of coverage available. Which policy should he choose?

• HO-3

• HO-4

• HO-5

• HO-2

Answer explanation

Michael should choose the HO-5 policy, as it offers the highest level of coverage for single-family homes, providing broader protection for both the structure and personal belongings compared to other options.

Grace is looking to buy insurance for her historic home, which has unique architectural features that would be difficult and expensive to replace. What type of insurance policy would best suit her needs?

• Covers new homes

• Covers rental properties

• Covers high-value properties

• Covers older homes with difficult-to-replace features

Answer explanation

Grace's historic home has unique features that are hard to replace, making an insurance policy that covers older homes with difficult-to-replace features the best choice for her needs.

Avery is comparing two homeowners insurance policies: HO-3 and HO-5. She wants to know the main difference between these policies regarding how her personal property is covered. What should Avery know?

• HO-3 insures personal property at replacement cost

• HO-5 insures personal property at actual cash value

• HO-5 provides named perils coverage for personal property

• HO-3 provides named perils coverage for personal property

Answer explanation

Avery should know that the HO-3 policy provides named perils coverage for personal property, meaning it only covers specific risks listed in the policy, while HO-5 offers broader coverage.

Ava is shopping for homeowners insurance and wants a policy that offers the broadest protection for both her house and her personal belongings. Which of the following is a feature of the HO-5 policy she is considering?

• All-risks coverage for both home and personal belongings

• Named perils personal property coverage

• Actual cash value for personal property

• Limited coverage for expensive property

Answer explanation

The HO-5 policy provides all-risks coverage for both the home and personal belongings, offering the broadest protection compared to other options like named perils or limited coverage.

Mia is renting an apartment and wants to make sure she is protected in case of unexpected events. She is considering getting renters insurance (HO-4). Which of the following would NOT be covered by her renters insurance policy?

• Personal belongings

• Additional living expenses

• Liability coverage

• Dwelling coverage

Answer explanation

Dwelling coverage is not included in renters insurance (HO-4), as it typically covers personal belongings, additional living expenses, and liability coverage, but not the physical structure of the apartment.

Aiden is comparing two homeowners insurance policies: an HO-3 and an HO-5. He wants to know the main difference between these policies regarding dwelling coverage. What should Aiden know?

• HO-3 provides all-risks dwelling coverage

• HO-5 provides named perils dwelling coverage

• HO-3 insures dwelling at actual cash value

• HO-5 insures dwelling at replacement cost

Answer explanation

HO-5 provides broader coverage than HO-3, insuring the dwelling at replacement cost rather than actual cash value. This means HO-5 covers the full cost to replace the home without depreciation.

Scarlett just purchased a condominium and wants to make sure she has the right insurance coverage. Which type of insurance is designed for condo owners?

• HO-2

• HO-4

• HO-6

• HO-8

Answer explanation

The correct insurance for condo owners is HO-6, which covers personal property and improvements within the unit. HO-2 is for homeowners, HO-4 is for renters, and HO-8 is for older homes, making HO-6 the right choice for Scarlett.