Question

3.  Gene is a Certified Public Accountant who lives in Pullman.  He lives with Marcus, his 14 year-old son; Paige, his ten year-old daughter; and Huey, his basset hound dog.  Gene purchased an unendorsed ISO Homeowners 3 policy.  A number of events have occurred since Gene purchased the policy.  Would the following claims / losses be covered under Gene’s HO-3 policy?  Assume the policy does not include a deductible.  (half-point per part)     

a.  Gene backed his car into a parked car at Walmart.  The damage  

      to the parked car was $900.                                                                  Covered     Not Covered

b.  While Gene, Marcus, and Paige were on a one-week vacation

      at Yellowstone Park, someone broke into their home and stole             Covered     Not Covered

      Gene’s big screen television set.  

c.  Pullman Police caught Paige throwing rocks at the windows

       of a vacant home.  The damage was $280.                                            Covered     Not Covered

d.  A hailstorm damaged the roof of Gene’s home.                                     Covered     Not Covered

e.  Gene fell asleep while smoking a cigarette in his den.  He dropped

the cigarette, and it set the carpet on fire.  The furniture in the           Covered     Not Covered  

       den was destroyed by the fire.              

f.  Gene has a tool shed in his backyard.  A windstorm destroyed

      the tool shed.                                                                                         Covered    Not Covered

g.  Dave, a friend of Marcus, was visiting Gene’s home.  Huey bit

      Dave.  Dave required $200 of medical care at a medical clinic.             Covered     Not Covered  

h.  Gene gave incorrect tax advice to a client.  The client is suing

       Gene for $7,500.                                                                                   Covered     Not Covered   

i.  An earthquake damaged the foundation of Gene’s home.                       Covered     Not Covered

j.  Torrential rain caused a stream close to Gene’s home to flood.  

      Flood waters damaged personal property in Gene’s basement.            Covered     Not Covered   

k.  Gene has an apartment above his garage.  He rents the apart-

      ment to a WSU student.  Gene lost rent when a fire in his                  

      garage made the apartment uninhabitable.   Gene wants to                  Covered     Not Covered  

      recover the lost rent from his insurer.                                                   

Answer 1

Please find below the scenarios and explaination regarding the policy coverage -:

a) Not covered since this has been caused by homeowners neglect

b) Covered: Theft is covered under HO-3 Policy

c) Not Covered: Since this has been caused by owners neglect

d) Not Covered: Natiral Disater does not comes under HO coverage.

e) Not Covered: Since this has been caused by owners neglect

f) Not Covered: Natiral Disater does not comes under HO coverage

g) Not Covered: Since this has been caused by owners neglect

h) Not Covered: Since this has been caused by owners neglect

i) Not Covered: Natiral Disater does not comes under HO coverage

j) Not Covered: Natiral Disater does not comes under HO coverage

k) Covered: Fire is covered under HO-3 Policy