Question 71

All-risks for buildings and named-perils for contents

A broad home insurance policy typically provides all-risks coverage for buildings while offering named-perils coverage for contents. This means that the structure of the home is protected against a wide range of potential damages, while the contents are only covered for specific risks that are explicitly listed in the policy.

A) All-risks for buildings and contents

This option is incorrect because, while it accurately describes the coverage for buildings, it incorrectly states that contents also enjoy all-risks protection. In a broad home insurance policy, contents are typically covered under named-perils, not all-risks.

B) Named-perils for buildings and contents

This option is incorrect as it suggests that both the buildings and contents are covered under named-perils. A broad home insurance policy provides all-risks coverage for the building, which distinguishes it from a named-perils approach.

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

This option is correct because it accurately reflects the coverage structure of a broad home insurance policy. The buildings are protected against a wide range of risks, while the contents are only covered against specific, listed perils.

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

This option is incorrect as it reverses the coverage types. Under a broad home insurance policy, buildings receive all-risks coverage, while contents are covered under named-perils, making this choice fundamentally inaccurate.

Conclusion

The correct option, C, clearly delineates the coverage provided by a broad home insurance policy, which is essential for understanding the protections available for both the structure and contents of a home. All other options fail to accurately represent the policy structure, either by misclassifying the coverage types or by not aligning with standard insurance terminology.