1. Name the 4 coverages provided in Section I of a homeowners policy. For each of the coverages, briefly describe the type of coverage provided, and give an example of a loss that would be covered.

2. Megan has her home and personal property insured under an unendorsed Homeowners 3 (special form) policy. Indicate whether each of the following losses (and resulting costs) are covered. If the loss is not covered, explain why it is not covered. For each question, provide more than just a yes/no answer. Describe why it is or is not covered.

a. Megan leaves a candle burning when she leaves the house and a spark from the candle starts a fire in her home. The fire department arises is short amount of time and is able to minimize fire damage to just 2 rooms but there is additional water damage from efforts to put out the fire.

b. Megans house is totally destroyed by a tornado. Her valuable Doberman pinscher dog is killed by the tornado.

c. Megan is on vacation, and a thief breaks into her hotel room and steals a suitcase containing jewelry, money, clothes, and an airline ticket.

d. Defective wiring causes a fire in the attic. Damage to the house is extensive. Mega is forced to move into a furnished apartment for three months while the house is being repaired.

e. Megans son, age 20, is attending college but is home for Christmas. A stereo set is stolen from his dormitory room during his absence.

f. The home is badly damaged in a severe earthquake. As a result of the earthquake, the foundation has a 3-foot crack and is now uneven.