Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which of the following is NOT typically covered under standard homeowners insurance?

1. Theft of personal property

2. Natural disasters like earthquakes

3. Vandalism

4. Liability for guest injuries

The correct answer is: Natural disasters like earthquakes

Homeowners insurance generally provides coverage for a range of perils including theft of personal property, vandalism, and liability for injuries that occur to guests on the property. However, natural disasters such as earthquakes are often excluded from standard homeowners policies. This exclusion is significant because earthquakes can cause extensive damage that requires specialized coverage. Homeowners typically have to purchase separate earthquake insurance to protect against these specific risks. Understanding these coverage limits is crucial for homeowners when assessing their insurance needs and potential gaps in protection. Thus, the correct answer highlights an important aspect of homeowners insurance policies.