South Carolina Personal Lines Practice Exam

Which of the following perils are covered under the Broad Form in HO-2, HO-4, and HO-6?

1. Only fire and smoke

2. Basic perils including theft and falling objects

3. Natural disasters only

4. Vandalism and civil disturbances only

The correct answer is: Basic perils including theft and falling objects

The Broad Form policy, utilized in HO-2, HO-4, and HO-6 homeowners insurance, provides coverage for a wide range of perils beyond just basic damage. It not only includes the basic perils but expands the coverage to include additional risks that can significantly impact personal property. The Broad Form encompasses basic perils such as fire, lightning, and vandalism, but it also covers theft, falling objects, weight of ice or snow, accidental discharge of water, and other specified risks. This is why the choice indicating that it covers basic perils including theft and falling objects is correct. It highlights the broader range of coverage provided to policyholders under these forms, ensuring that they have more comprehensive protection against a variety of risks. This is particularly important for homeowners and renters to understand, as it can influence their decision on the level of coverage they need to protect their belongings. Understanding the scope of coverage helps policyholders recognize the value of their insurance and to properly assess their risks in relation to their property.