Texas Adjuster Practice Test

Under a HO-B policy, what types of losses are covered for the dwelling/structure?

1. Direct loss from floods and earthquakes

2. Losses resulting from nuclear accidents

3. Fire, lightning, windstorms, and explosions

4. Theft, vandalism, and intentional damage

The correct answer is: Fire, lightning, windstorms, and explosions

In the context of a Homeowners (HO-B) policy, coverage for the dwelling or structure is specifically designed to protect against certain perils that commonly threaten residential properties. The correct answer highlights that this type of insurance covers losses due to fire, lightning, windstorms, and explosions. These perils are recognized as common risks that can directly affect the physical structure of a home. Fire and lightning can cause significant damage to homes, leading to costly repairs or total loss. Windstorms, particularly in areas prone to hurricanes or severe storms, can also pose a serious risk to the integrity of a dwelling. Explosions, whether due to household gas leaks or other sources, can result in severe structural damage. In contrast, the other options refer to circumstances that are either not covered under a standard HO-B policy or are subject to separate coverage endorsements. Floods and earthquakes typically require additional policies or endorsements due to their specific risk profiles. Nuclear accidents are also excluded in standard homeowners insurance policies, as they fall outside the scope of normal insurable risks. Lastly, theft, vandalism, and intentional damage may be covered, but these are typically classified under personal property or liability coverage rather than structural coverage, depending on the terms of the policy.