RIsk Managment and Insurance Scott has his home and personal property insured under an unendorsed Homeowners...

RIsk Managment and Insurance

Scott has his home and personal property insured under an unendorsed Homeowners 3 (Special Form) policy. Indicate whether each of the following losses is covered. (Assume the policy has no deductible.) If the loss is not covered, explain why it is not.

1. The carpet was heavily damaged when Scott left the bath tub running while he answered the telephone.

2. The home is located approximately one block from the Federal Court House and is damaged when a domestic terrorist tries to blow up the courthouse to protest the government’s use of force in the Middle East.

Expert Solution

1. Most Homeowners 3 policies cover the damage caused by water coming out of burst pipes or accidental leakages. In this case, damage is caused due to Scott's negligence and most probably will not be covered.

2. The act would be classified as terrorist act and is covered under HO3 policy . Please note, acts of war are not covered by HO3 special form policy.

keosha answered 2 years ago

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