*FROM THE BOOK FIN 151- Risk Management and Insurance (Pearson Custom Business Resources)*

Homeowners I

Application 4:

Megan has her home and personal property insured under an unendorsed Homeowners 3 (special form) policy. Indicate whether each of the following losses is
covered. If the loss is not covered explain why it is not covered.

a. Megan carelessly spills a can of paint while painting a bedroom. A wall-to-wall carpet that is part of the bedroom is badly damaged and must be replaced.

b. Water backs up from a clogged drainpipe floods the basement and damages some books stored in a box.

c. Megan%u2019s house is totally destroyed in a tornado. Her valuable Doberman Pinscher dog is killed in the tornado.

d. During a frost warning smudge pots from a nearby orange grove emit dense smoke that settles on Megan%u2019s freshly painted house.

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

f. Megan%u2019s son is playing baseball in the yard. A line drive shatters the living room window.

g. A garbage truck accidentally backs into the garage door and shatters it.

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

i. Megan%u2019s son age 20 is attending college but is home for Christmas. A stereo is stolen from his dormitory room during his absence.

j. During the winter heavy snow damages part of the front lawn and the sod must be replaced.

k. During a windstorm an elm tree in Megan%u2019s yard is blown over.

l. Carpeting is damaged from the overflow of water from a bathtub because Megan left the water running while answering the telephone.

m. The home is badly damaged in a severe earthquake. As a result of the earthquake the front lawn has a three-foot crack and is now uneven.

n. An icemaker in the refrigerator breaks and water seeps into the flooring and carpets causing considerable damage to the dwelling.