HO-3 Section I: Property Coverages

Coverage A: Dwelling (open peril)

Coverage B: Other Structures (open peril)

Coverage C: Personal Property (named peril)

Coverage D: Loss of Use

Additional Coverage

Sam and Sally Green have a standard HO-3 homeowners policy with no endorsements. The dwelling is insured for its full value. Indicate whether or not each of the following losses is covered and under what coverage. Specify why each loss is covered or not covered.

5. Sally carelessly spills a can of paint on her wall-to-wall living room carpet. The carpet is ruined and must be replaced. (Note: wall-to-wall carpet is considered part of the dwelling.)

6. A delivery truck accidentally backs into the garage door and damages it.

7. An electrical fire causes extensive damage to the Green's home. Sam and Sally are forced to live in a hotel for a month while their home is repaired.

8. Smoke from a nearby industrial operation damages the Green's freshly painted home.