Homeowners Policy (HO)Question 318 of 474
An off-premises transformer fails, a freezer thaws, and the food spoils. On a standard form the food loss is:
a.covered as an additional living expense
b.not covered, since food is excluded property
c.covered, since the freezer sits on site
d.not covered, as the failure was off site
Explanation
The power failure exclusion applies when the failure of power or another utility service takes place away from the residence premises; had the failure happened on the premises and led to a covered peril there, the ensuing loss would be paid. Food is ordinary personal property and is not excluded, so the answer blaming the property type identifies the wrong reason.
This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 474 questions free — no signup required.
Own the complete Personal Lines Insurance Producer guide — PDF + EPUB, $19.99 →
Related questions on this topic
- A landslide shifts the ground under a house and cracks the foundation. Under Section I the loss is:
- Heavy rain overloads a public sewer and water backs up into a basement. On an unendorsed Homeowners policy the damage is:
- Fire destroys most of an older home and the current code requires the rest be rebuilt to new standards. That extra cost is:
- After a small kitchen fire, the owner leaves the roof open to rain for weeks and the damage spreads. The added damage is:
- A city condemns and demolishes a house for a zoning violation. On a Homeowners policy this loss is:
- Which of these is excluded from Coverage C on a Homeowners policy?
Last reviewed: · editorial process
PrepPass team · Verified against California Personal Lines Insurance License Exam · How we review