Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Will Homeowners Liability cover damage if an electric wheelchair accidentally runs into a neighbor's fence?

1. No, it covers only property damage

2. No, it only covers personal injuries

3. Yes, it would apply

4. Yes, but only under specific circumstances

The correct answer is: Yes, it would apply

The correct response is that homeowners liability would typically cover damage if an electric wheelchair accidentally runs into a neighbor's fence, which makes the reasoning for this answer valid. Homeowners liability insurance is designed to provide coverage for damages that the homeowner might cause to another person's property. In the scenario where an electric wheelchair unintentionally impacts a neighbor's fence, this would fall under the category of unintentional property damage, which homeowners liability generally protects against. The purpose of this coverage is to cover unforeseen accidents that occur on the insured premises or as a result of their actions. Therefore, this type of incident aligns with the coverage provided by homeowners liability insurance. In contrast, if the other options were considered, one might think that limiting the coverage to only property damage or personal injuries fails to recognize that homeowners liability encompasses a broader spectrum of potential liabilities, including both types of damage. Additionally, if the stance had been that it applies only under specific circumstances, it would imply unnecessary limitations when the general liability coverage would typically apply in straightforward accident scenarios like this one.