Which of the following statements about the additional coverages under Section I of the Homeowners 3 policy is true?
A) There is coverage for the reasonable cost incurred to protect property from further damage after a covered loss occurs.
B) There is unlimited coverage for furnishings of the landlord in an apartment on the premises that is rented to others.
C) Property removed from the premises because it is endangered by an insured peril is covered on a named-perils basis while it is outside the insured premises.
D) There is no coverage for the increased cost of construction or repair to comply with an ordinance or law.
Question 2
Which of the following statements about coverage for loss of use (Coverage D) under the Homeowners 3 policy is true?
A) If a covered loss makes the home unfit for living, the insurer pays additional living expenses the insured may incur as a result of the loss.
B) The duration of payments for additional living expenses is limited to a maximum of 30 days.
C) There is no coverage for loss of rent if an insured peril makes the part of the premises rented to others uninhabitable.
D) There is coverage for loss of business income if an insured peril forces a home business to be terminated.
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