Difficulty: Medium

Average Score: 61%

Which of the following collapse losses would be covered under a HO-3?

Rationale

Weight of snow would be covered under a HO-3.

The HO-3 homeowners insurance policy typically covers damage caused by weight of snow on structures, as it is considered a peril that is covered under most standard policies. This type of coverage protects homeowners from potential losses associated with snow accumulation that can lead to structural damage.

A (Weight of snow.) CORRECT

This choice is correct because the HO-3 policy explicitly covers perils related to natural occurrences, including heavy snowfall. Damage caused by the weight of accumulated snow on roofs or other structures falls under covered events, helping homeowners recover from damage without significant out-of-pocket expenses.

B (Known insect damage.) YOUR ANSWER

Known insect damage is generally not covered by HO-3 policies, as homeowners are expected to maintain their property and address issues such as pests proactively. Insurance typically does not cover damage that is a result of neglect or that has been identified prior to the policy's inception.

C (Earth movement from a volcanic eruption.) YOUR ANSWER

While some policies may cover certain types of earth movement, volcanic eruptions are often excluded from standard coverage due to their catastrophic nature. As such, damage from volcanic activity is not typically included in HO-3 policies, which tend to focus more on common perils.

D (Defective workmanship completed 2 years ago.) YOUR ANSWER

Defective workmanship is typically a responsibility of the homeowner or contractor and is not covered under HO-3 policies. Insurance policies focus on sudden and accidental damage rather than issues arising from poor construction or maintenance practices.

Conclusion

The HO-3 homeowners insurance policy provides coverage for specific perils, including damage caused by the weight of snow, which is a common natural occurrence. In contrast, known insect damage, earth movement from volcanic eruptions, and defective workmanship are generally excluded from coverage, emphasizing the importance of understanding policy limitations and responsibilities.

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