Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What does the property damage section of a basic Homeowners Policy cover?

1. Only the dwelling building

2. Detached private structures and personal properties only

3. Dwelling, personal property, and additional living expenses

4. Landscaping and outdoor structures only

The correct answer is: Dwelling, personal property, and additional living expenses

The correct choice is that the property damage section of a basic Homeowners Policy covers the dwelling, personal property, and additional living expenses. In a standard Homeowners Policy, the dwelling refers to the main structure of the home itself, while personal property includes belongings inside the home, such as furniture, clothing, and appliances. Additionally, the coverage typically extends to additional living expenses, which refers to the costs incurred from living elsewhere if the home is uninhabitable due to covered damages, such as fire or severe weather events. This comprehensive coverage is designed to protect the homeowner from a variety of risks related to both the physical structure and the personal possessions contained within it, alongside ensuring that they are not financially burdened while their home is being repaired or restored.