Brian purchased an unendorsed Homeowners 3 policy.Under the policy,Brian's detached garage is also covered.Which of the following statements regarding coverage on the garage is true?
A)The garage is covered on a named-perils basis.
B)Any losses to the garage are settled on an actual cash value basis.
C)The garage is covered on an open-perils basis.
D)The garage is covered under the dwelling coverage,Part A.

Question

Quizplus · Accepted Answer

Under an unendorsed Homeowners 3 policy, the detached garage is covered on an open-perils basis, meaning it is covered for all risks except those specifically excluded in the policy. This is in contrast to a named-perils basis, where only risks explicitly listed in the policy are covered. Any losses to the garage would typically be settled on a replacement cost basis, as opposed to actual cash value. The garage is not covered under the dwelling coverage, Part A, but rather under the Other Structures coverage, Part B.

Brian Purchased an Unendorsed Homeowners 3 Policy