Homeowners InsuranceQuestion 159 of 215

Which of the following Section I losses is COVERED on an unendorsed HO-3?

a.Damage caused by an earthquake
b.Damage caused by flood
c.Damage caused by ordinary settling of the foundation
d.Damage caused by a lightning strike that ignites the attic

Explanation

Lightning is one of the original named perils universally covered on the HO-3 dwelling (open peril) and on personal property (named peril). Earthquake and flood are excluded and require separate coverage; ordinary wear and tear, settling, and deterioration are explicitly excluded as inevitable, non-fortuitous losses that fail the basic insurability test.

Law Reference: ISO Homeowners — Section I exclusions

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