Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Is it accurate to say that the Homeowners Comprehensive policy always benefits the insured?

1. Yes, it always benefits the insured

2. No, it does not always benefit the insured

3. Only in case of total loss

4. Only during catastrophic events

The correct answer is: No, it does not always benefit the insured

Saying that the Homeowners Comprehensive policy always benefits the insured is not entirely accurate because while these policies provide extensive coverage, there are situations where they may not fully benefit the insured. For instance, various exclusions and limitations are built into the policy that can affect the insured's benefit. Certain types of damages, personal liability issues, or specific perils that are not covered can result in gaps in coverage, meaning the policyholder may not receive the intended financial support when facing losses. In addition, the context surrounding a claim, such as the circumstances of a loss and adherence to policy terms, can influence the outcome. For example, if the loss is due to negligence or failure to maintain the property as outlined in the policy, this could also impact how benefits are received. Thus, it's essential to understand that while Homeowners Comprehensive policies are designed to provide significant protection, they have specific terms and conditions that might not always result in a benefit for the insured in every scenario.