Question 71

All-risks for buildings and named-perils for contents

A broad home insurance policy typically provides all-risks coverage for the buildings, meaning it covers a wide range of potential damages, while offering named-perils coverage for the contents, which only covers specific risks outlined in the policy.

A) All-risks for buildings and contents

This option is incorrect because a broad home insurance policy does not provide all-risks coverage for both buildings and contents. Instead, it specifically offers all-risks coverage only for the buildings.

B) Named-perils for buildings and contents

This option is incorrect as it suggests that both buildings and contents are covered under named-perils. A broad policy provides all-risks coverage for buildings, not named-perils.

C) All-risks for buildings and named-perils for contents

This option is correct because it accurately reflects the coverage provided by a broad home insurance policy, which includes all-risks protection for the buildings and named-perils coverage for the contents.

D) Named-perils for buildings and all-risks for contents

This option is incorrect since it reverses the coverage types. A broad home insurance policy does not provide named-perils coverage for buildings; it provides all-risks coverage instead.

Conclusion

The correct answer is C because it precisely describes the coverage structure of a broad home insurance policy, differentiating between the all-risks protection for buildings and the named-perils coverage for contents. All other options mischaracterize the coverage provided, failing to reflect the specifics of the policy.