Property & Casualty Insurance Exam (National Portion)Property InsuranceHard
Which of the following is NOT an additional coverage typically found in a standard Homeowners Policy (HO-3)?
- AOrdinance or Law
- BReasonable Repairs
- CLandslide Damage
- DDebris Removal
Show answer & explanationAnswer & explanation
Correct answer: C. Landslide Damage
Standard Homeowners policies (including HO-3) typically include additional coverages like Debris Removal, Reasonable Repairs, and limited Ordinance or Law coverage. However, landslide damage is a form of earth movement, which is a common exclusion in all standard homeowners policies and requires a separate policy (like an earthquake policy with a landslide endorsement) for coverage.
Why the other options are wrong
- A. Limited Ordinance or Law coverage is typically included as an additional coverage, covering increased costs due to building code enforcement.
- B. Reasonable Repairs (to protect property from further damage) is a standard additional coverage.
- D. Debris Removal is a standard additional coverage in HO policies.
Homeowners Additional Coverages
Specific coverages included in a standard homeowners policy, often with separate limits or conditions, that extend or enhance protection beyond the main dwelling and personal property coverages.
- Automatically included in the policy form.
- Examples: Debris removal, reasonable repairs, fire department service charge, limited ordinance or law, loss assessment, grave markers.
- Do not include typically excluded perils like flood or earthquake.
Memory trick: Additional coverages are the 'extra perks' that come standard with your home's protection plan.