Which of the following statements concerning the coverage of collapse of the dwelling under an unendorsed Homeowners 3 policy is true?
A)There is no coverage for collapse,regardless of the cause of the collapse.
B)Collapse is covered if it is caused by one of the Coverage C perils.
C)If collapse is caused by an earthquake,the loss is covered.
D)There is no coverage for collapse unless the proper endorsement is added to the policy.

Question

Quizplus · Accepted Answer

Collapse is typically covered under Coverage C (Personal Property) of the Homeowners 3 policy if it is caused by one of the named perils. However, if the collapse is caused by earth movement, it is specifically excluded under Coverage C. Collapse is not typically covered under the unendorsed Homeowners 3 policy under Coverage A (Dwelling), but may be covered under a specific collapse endorsement.

Which of the Following Statements Concerning the Coverage of Collapse