Question

Which of the following risks would NOT be eligible for coverage under a homeowners policy?

1) Earthquake damage
2) Theft of personal property
3) Fire damage
4) Water damage

Answer 1

A homeowners policy typically does not cover earthquake damage.

Step-by-step explanation:

A homeowners policy typically does not cover earthquake damage. While theft of personal property, fire damage, and water damage are generally covered under a homeowners policy, earthquake damage is considered a separate risk that requires additional coverage or a separate policy.

For example, if an earthquake were to occur and cause damage to a home, the homeowner would need earthquake insurance to cover the cost of repairs or rebuilding. This type of insurance specifically covers damage caused by earthquakes and is not included in a standard homeowners policy.