Question

Coverage A and Coverage B under a Homeowners 3 policy insure the dwelling and other structures against “direct physical loss.” Explain the meaning of this phrase. Coverage C under a Homeowners 3 policy covers personal property on a named-perils basis. List the various perils that are covered.

Answer 1

The term direct physical loss means that the insurer is covered against all losses to the physical property attached with the house such as a garage , shed etc except those specifically excluded. Those specifically excluded are collapse, freezing, dwelling under construction, Wear and tear , Birds, rodents or insects , Besting or infestation or discharge or release of waste , animals owned by the insurer, Vandalism and malicious mischief and Mold, fungus, or dry rot .

Perils that are covered under Coverage C :

1. Windstorm of hail

2. Vehicles

3. Smoke

4. Fire or Lighting

5. Weight of ice, snow or sleet

6. Unexpected discharge or overflow of steam or water

7. Sudden destroying, cracking, boiling of a steam, hot water, air conditioning or automatic fire protective sprinkler system or appliances for heating water

8. Volcanic eruption

9. unexpected damage from an artificially generated electrical current

10. Vandalism or Malicious Mischief

11. Aircraft

12. Explosion

13. Riot or civil commotion

14. Falling objects

15. Theft