Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What type of covered loss might apply to the insured's personal property stored off-premises?

1. Only fire-related losses

2. All perils excluding natural disasters

3. Standard perils as outlined in the policy

4. No coverage applies

The correct answer is: Standard perils as outlined in the policy

The correct answer indicates that the insured's personal property stored off-premises may be covered for standard perils as outlined in the insurance policy. Typically, insurance policies provide coverage for certain perils such as theft, vandalism, or fire, even when items are stored in a location other than the main residence. This means that as long as the peril is specified within the policy, the coverage will apply to personal property, irrespective of its location. Standard perils offer a baseline of protection and are commonly recognized in the context of insurance policies. It's crucial for policyholders to review their specific policy for details on what constitutes these standard perils and any limitations related to off-premises coverage. Options that suggest limited coverage, such as only fire-related losses, or that coverage is completely excluded, do not accurately reflect the typical coverage for off-premises personal property. While some policies might have exclusions or special conditions for natural disasters, standard perils usually provide a more inclusive range of protections. Hence, recognizing standard perils as the basis for coverage offers a broader understanding of the types of risks that are protected, thus making it the correct choice.