Diane has her home and personal property insured under an HO-3 policy and is covering the actual value of the home. She has no endorsements. Indicate whether each of the following losses is covered and indicate what section of the HO-3 policy supports your answer.

1. A fire damaged the home, destroying two of the end tables in the living room.

2. The fire also destroyed Diane's fur coat, which was valued at $100,000, and her three computers, valued at $1,500

3. The house sustained smoke damage from a nearby industrial

4. A windstorm destroyed five trees in the large

5. A windstorm caused a tree to fall on the roof. The roof is a total

6. Diane's dog bit a neighbor's

7. Diane hurt her teammate while playing soccer. The teammate was in the hospital for three

8. During a skiing trip, Diane left the fireplace burning in her cabin when she went out. The cabin was destroyed in the

9. Diane rented a snowmobile on the same trip and collided with a skier. He sued her for $50,000.

10. Diane is a self-employed dietician who works at home. A client sued her for $30,000.

11. Diane entertained members of her bridge club and served a wonderful buffet lunch. Three guests became ill and sued Diane for damages. The court awarded each $15,000.

In light of all the losses sustained by Diane, she asked you about improving her coverage.

What would you suggest that she do?

Think about everything that would improve her coverage using your newly acquired knowledge.

Pretend she did not cover the actual value of her home.

What would you suggest she do?