Registered Insurance Brokers of Ontario (RIBO) Practice Exam

All of the following are exclusions under Homeowners Liability coverage except:

1. The ownership, use or operation of any motorized vehicle, trailer, or watercraft.

2. Claims for damage resulting from natural disasters.

3. Intentional acts causing property damage.

4. Property damage while using a rented vehicle.

The correct answer is: The ownership, use or operation of any motorized vehicle, trailer, or watercraft.

The correct answer is that claims for damage resulting from natural disasters are not typically excluded under Homeowners Liability coverage. Homeowners policies usually cover a range of liabilities, including those arising from unfortunate incidents that might occur due to natural disasters, although there are limitations on coverage related to property damage itself depending on the specific conditions of the policy. In regard to the other options, liabilities related to the operation of motorized vehicles, intentional acts causing damage, and property damage while using a rented vehicle are generally excluded under homeowners liability coverage. These exclusions are in place because homeowners insurance is not designed to cover liabilities that are typically addressed under other types of insurance, like auto insurance for vehicles, or for actions reflecting willful misconduct. Therefore, claims stemming from these contexts usually fall outside the scope of standard homeowners liability coverage.