Texas Adjuster Practice Test

What type of damages is a dwelling covered for under the HO-B policy?

1. Intentional damage by the homeowner

2. Accidental damage only

3. Direct physical loss from named perils

4. Damages from civil disobedience

The correct answer is: Direct physical loss from named perils

The HO-B policy, commonly referred to as the Homeowners 2 policy, provides coverage for direct physical loss to a dwelling caused by named perils. Named perils are specific risks outlined in the policy, such as fire, lightning, vandalism, and windstorm, which must occur for the policy to provide coverage. This means that if a peril listed in the policy causes damage to the dwelling, the homeowner is entitled to compensation for the loss. This type of coverage emphasizes protection against unforeseen events that lead to physical loss or damage, ensuring homeowners have a safety net for common risks associated with property ownership. The policy aims to provide financial stability and assistance for repairs or rebuilding when these specific hazards occur. The other options do not align with the coverage principles defined by the HO-B policy. For instance, intentional damage by the homeowner is typically not covered, and damages resulting from civil disobedience would usually fall under different exclusions, not within the scope of direct physical loss from named perils.