Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What does the Homeowners Comprehensive policy include as automatic coverage?

1. Personal liability for accidents

2. Private structures on the insured's premises

3. Coverage for all outdoor furniture

4. Basic personal property inside the home

The correct answer is: Private structures on the insured's premises

The Homeowners Comprehensive policy typically provides automatic coverage for private structures on the insured’s premises. This means that structures such as sheds, detached garages, or fences that are not attached to the home are usually covered under this type of policy without the need for additional endorsements or riders. This automatic inclusion helps ensure that homeowners have protection for common additional structures that may be present on their property. While personal liability for accidents, coverage for outdoor furniture, and basic personal property inside the home are also important aspects of home insurance, they typically do not enjoy the same automatic coverage status as private structures. Personal liability might require specific conditions to be met, outdoor furniture may not be covered unless specified in the policy, and basic personal property is usually included but might have limits based on the policy terms. Thus, the comprehensive nature of the policy emphasizes the inclusion of private structures, making that the correct answer.