South Carolina Personal Lines Practice Exam

Which of the following losses would NOT be covered by a HO policy?

1. 550 trailer blown away by a tornado

2. A stolen tea set worth 2000

3. 800 outboard motor destroyed by hail

4. Coin collection valued at 500 lost in a fire

The correct answer is: Coin collection valued at 500 lost in a fire

Homeowners (HO) insurance policies provide coverage for a variety of personal property losses, but they often have specific limitations on certain types of items. In this case, the loss of a coin collection in a fire may not be covered due to the specific exclusions or limitations that many homeowners policies have concerning collections and high-value items. Insurance policies often have sub-limits for specific types of property, such as jewelry, collectibles, or fine art, which means that even if a loss occurs, it may not be fully covered or might require additional coverage. Collectible items, like coins, are usually subject to more restrictions and may need to be specially insured. If the policy places a limit on the loss of collectible items or provides less coverage than the value of the collection, then the loss may not be fully compensated under the standard HO policy. On the other hand, losses such as a trailer blown away by a tornado, a stolen tea set, or an outboard motor damaged by hail fall under more typical perils covered by homeowners insurance, as they usually pertain to common types of personal property without the same restrictions as collectibles. Therefore, the loss of the coin collection is the one that would most likely not be covered by a standard homeowners policy.