Exam DISC-IA Practice Question 430
Study guide: Exam DISC-IA
An HO-3 (HO 00 03 05 11) insured rents a lake cabin for a week of vacation, which makes it an insured location. While there, he causes $40,000 of damage to the cabin when he leaves a pan unattended and starts a kitchen fire, and separately spills bleach on the owner's $2,000 rug. How does Section II respond?
- A) Coverage E pays the fire damage; the rug is paid up to $1,000 under an additional coverage
- B) Coverage E pays both, because the cabin is an insured location
- C) Coverage E pays the rug but not the fire damage, because fire is a Section I peril
- D) Neither is covered, because all damage to property rented to an insured is excluded from Coverage E
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