Difficulty: Hard

Average Score: 47%

Which loss is covered under a Homeowners policy

Rationale

Theft of a canoe from an attached garage is covered under a Homeowners policy.

Homeowners policies typically provide coverage for personal property located on the insured premises, which includes items stored in attached structures like garages. In this case, a canoe stored in an attached garage falls under the coverage for personal belongings, making it a valid claim.

A (Theft committed by an insured) YOUR ANSWER

Homeowners policies generally exclude losses resulting from theft committed by the insured themselves. This exclusion is in place to prevent individuals from profiting from their own dishonest actions, thereby maintaining the integrity of the insurance system.

B (Off-premises theft of a camper) YOUR ANSWER

While a homeowners policy may cover personal property theft, it often has limitations for items that are not on the insured premises. A camper, when stolen off-premises, typically falls outside the standard coverage of a homeowners policy, as it is considered a vehicle rather than personal property.

C (Theft of a canoe from an attached garage) CORRECT

Theft of a canoe from an attached garage is covered under a Homeowners policy, as personal property within the dwelling or its attached structures is included in the coverage. This aligns with the policy's intention to protect belongings that are stored safely on the insured property.

D (Theft of a laminated beam to be used in new construction) YOUR ANSWER

Theft of materials intended for new construction, like a laminated beam, is generally not covered under a homeowners policy. Such materials are typically classified as building supplies rather than personal property, and coverage for them may require a separate builders risk policy or endorsement.

Conclusion

Homeowners insurance provides coverage for personal property located within the insured premises, which includes items like a canoe stored in an attached garage. In contrast, losses associated with theft perpetrated by the insured, off-premises theft of vehicles, or construction materials are typically excluded from coverage. Understanding these distinctions is crucial for homeowners to ensure adequate protection of their assets.

Related Questions

View all