Homeowners InsuranceQuestion 158 of 215
While an insured's HO-3 home is being constructed (not yet occupied), building materials stored on site are stolen. How does the standard HO-3 typically respond?
a.Theft of building materials before the dwelling is occupied is excluded under the standard form
b.Theft is covered without restriction
c.Theft is covered up to Coverage A limit
d.Theft is covered up to Coverage B limit
Explanation
The standard HO-3 excludes theft of building materials and supplies before the dwelling is finished and occupied as a residence. A builder's risk policy (or a dwelling under construction endorsement) is the proper coverage during the construction phase. After the insured moves in, the theft exclusion no longer applies and ordinary HO-3 theft coverage begins.
Law Reference: ISO Homeowners — Theft of building materialsPractice all 215 questions free — no signup required.
Related questions on this topic
- Which of the following claims would be EXCLUDED under Section II Coverage E of a standard HO-3?
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- Which of the following Section I losses is COVERED on an unendorsed HO-3?
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