State Farm Insurance License Practice Exam

What does Coverage B of a homeowners policy specifically cover?

1. Liability for injuries to others

2. Other structures on the premises

3. Loss of use expenses

4. Personal property within the home

The correct answer is: Other structures on the premises

Coverage B of a homeowners policy specifically addresses the protection of "Other Structures" on the premises. This includes detached garages, sheds, fences, and other structures that are separate from the main dwelling. The importance of Coverage B lies in its ability to provide financial support for repairs or reconstruction of these structures in the event they are damaged or destroyed due to a covered peril, such as fire, wind, or vandalism. This coverage is essential for maintaining the overall value and functionality of the property, as many homeowners have various additional structures that contribute to their living space or utility. In contrast, liability for injuries to others, loss of use expenses, and personal property coverage fall under different sections of a homeowners policy, thereby solidifying Coverage B's unique role in protecting these specific types of structures.