Registered Insurance Brokers of Ontario (RIBO) Practice Exam

If property is moved to protect it from loss, what is true according to the RIBO homeowner's form?

1. Coverage is provided for 30 days or until the policy expires, whichever comes first.

2. Coverage is provided for 90 days regardless of policy expiration.

3. No coverage is provided under any circumstances.

4. Coverage applies only if the property is moved to a safer location.

The correct answer is: Coverage is provided for 30 days or until the policy expires, whichever comes first.

The correct response accurately reflects the guidelines set forth in the RIBO homeowner's form regarding the movement of property to safeguard it from potential loss. When property is relocated to avoid damage or loss, coverage is maintained for a limited time period of 30 days. This temporary extension allows insured individuals to ensure their property is protected while they are taking necessary actions to secure it. The other options present misunderstandings about the coverage terms. For instance, the notion that coverage would last for 90 days is inaccurate according to these guidelines, as they specifically limit the extension to a shorter duration. The assertion that no coverage is provided contradicts the provisions in the homeowner's form, which does indeed allow for temporary coverage under specified conditions. Lastly, the idea that coverage applies solely when property is moved to a safer location overlooks the fact that the 30-day coverage is applicable regardless of the final destination, as long as the intention is to protect the property.