State Farm Home Owner Policy Study
Guide with Complete Solutions
$0. The water that seeped under the door is surface water which is listed
under losses not insured (page 10, sub-paragraph c, #1)
5) None of the above. Earthquake and landslide are listed under losses not
insured (page 10, paragraph 2, sub-paragraph b). Flood is also listed under
losses not insured (page 10, sub-paragraph c #1) - ANSWER-During a rainstorm water
pooled on the back patio and seeped under the
back door. The area rug ($50) in front of the door was damaged and so was
the laminate flooring ($1,300). One piece of baseboard ($35) was damaged
and it will cost $125 to paint the continuous baseboards. The insured has a
$250 deductible. As the adjuster what do you owe?
$1,000 Actual Cash Value = $1,500
Deductible = $500
Payable = $1,000
Wood fences are settled at actual cash value (page 11 Loss
Settlement paragraph 1 sub-paragraph b) and do not qualify for
Option ID because fences are not building structures. - ANSWER-After a windstorm, the
Thompson's entire board-on-board wood fence was
destroyed. The cost to replace the fence is $2,300 and the actual cash value
is $1,500. The Thompson's have a coverage A limit of $300,000, Option ID
of $70,000 and a $500 deductible. As an adjuster how much would you owe?
$1,700. Prohibited Use is covered on page 4 LOSS OF USE #3. Coverage is
provided up to 2 weeks. Since Kelly did not stay longer than 2 weeks the
entire amount can be paid. Although there was no damage to her house
Prohibited Use only requires there be damage to a "neighboring premises." - ANSWER-
The sheriff's depart in Melbourne, FL required all residents living east of
Harbor City Blvd to evacuate due to an approaching hurricane. Kelly is
insured with a FP-7955 with a $500 deductible and lives in the evacuation
area. She drove inland to Kissimmee and stayed in a hotel for 2 weeks and
incurred $1,100/wk. When she returned there was wind damage in her
neighborhood but no damage to her house. As an adjuster what would you
owe?
$13,650 Dwelling extensions covered up to 10% of the coverage A
limit = $13,000
5% available for debris removal if the expense is incurred = $650
Maximum amount payable = $13,650 - ANSWER-Sean lives in Dallas and has a FP-
7955 with a coverage A limit of $130,000
and a coverage B limit of $70,000. He suffered a fire loss and it appears the
house will be a total loss.
, If it was the detached garage instead of the house what is the most
we could pay including debris removal?
$14,700 Dwelling extensions covered up to 10% of the coverage
A limit = 13,000
5% available for debris removal if the expense is incurred = $650
Maximum amount payable = $13,650
Option ID does not apply to in-ground swimming pools - ANSWER-The Fowler's have a
home in Kentucky with the following policy limits:
• Coverage A $140,000
• Coverage B $90,000
• Coverage C - 24 months
• Option ID $20,000
If the home has an in-ground swimming pool what is the most we
could pay?
$2,000 (page 3 COVERAGE B - PERSONAL PROPERTY
paragraph 1) states: We cover personal property usually situated at an
insured's residence, other than the residence premises, for up to $1,000 or
10% of the coverage B limit, which-ever is greater. - ANSWER-The insured has 2 beds,
2 couches, 2 chairs and 1 table that are normally
situated at the fishing camp. On a holiday weekend the insured brings an
extra blow-up mattress from his home in New Orleans to accommodate an
extra guest.
What is the most you could pay for the 2 beds, 2 couches, 2 chairs and
1 table?
$3,300. The wind damage to the roof is a covered loss $3,500
Temporary repairs are covered $300
Total $3,800
Less deductible <$500>
Payable $3,300
Temporary repairs are found in the policy on page 5, paragraph 2.
Temporary repairs are
Not an additional amount of insurance and they are subject to the deductible
but there is
"to protect the property from further immediate damage or loss." - ANSWER-10) If all
repairs have been completed what should the adjuster pay on this
loss?
$7,000
• Damage to drywall & paint $750 - covered
• Lawn mower $450 - covered
• Shelving $700 - covered
• Gun safe $800 - covered
• Hunting rifles $1,600 - covered (special limit does not apply)
Guide with Complete Solutions
$0. The water that seeped under the door is surface water which is listed
under losses not insured (page 10, sub-paragraph c, #1)
5) None of the above. Earthquake and landslide are listed under losses not
insured (page 10, paragraph 2, sub-paragraph b). Flood is also listed under
losses not insured (page 10, sub-paragraph c #1) - ANSWER-During a rainstorm water
pooled on the back patio and seeped under the
back door. The area rug ($50) in front of the door was damaged and so was
the laminate flooring ($1,300). One piece of baseboard ($35) was damaged
and it will cost $125 to paint the continuous baseboards. The insured has a
$250 deductible. As the adjuster what do you owe?
$1,000 Actual Cash Value = $1,500
Deductible = $500
Payable = $1,000
Wood fences are settled at actual cash value (page 11 Loss
Settlement paragraph 1 sub-paragraph b) and do not qualify for
Option ID because fences are not building structures. - ANSWER-After a windstorm, the
Thompson's entire board-on-board wood fence was
destroyed. The cost to replace the fence is $2,300 and the actual cash value
is $1,500. The Thompson's have a coverage A limit of $300,000, Option ID
of $70,000 and a $500 deductible. As an adjuster how much would you owe?
$1,700. Prohibited Use is covered on page 4 LOSS OF USE #3. Coverage is
provided up to 2 weeks. Since Kelly did not stay longer than 2 weeks the
entire amount can be paid. Although there was no damage to her house
Prohibited Use only requires there be damage to a "neighboring premises." - ANSWER-
The sheriff's depart in Melbourne, FL required all residents living east of
Harbor City Blvd to evacuate due to an approaching hurricane. Kelly is
insured with a FP-7955 with a $500 deductible and lives in the evacuation
area. She drove inland to Kissimmee and stayed in a hotel for 2 weeks and
incurred $1,100/wk. When she returned there was wind damage in her
neighborhood but no damage to her house. As an adjuster what would you
owe?
$13,650 Dwelling extensions covered up to 10% of the coverage A
limit = $13,000
5% available for debris removal if the expense is incurred = $650
Maximum amount payable = $13,650 - ANSWER-Sean lives in Dallas and has a FP-
7955 with a coverage A limit of $130,000
and a coverage B limit of $70,000. He suffered a fire loss and it appears the
house will be a total loss.
, If it was the detached garage instead of the house what is the most
we could pay including debris removal?
$14,700 Dwelling extensions covered up to 10% of the coverage
A limit = 13,000
5% available for debris removal if the expense is incurred = $650
Maximum amount payable = $13,650
Option ID does not apply to in-ground swimming pools - ANSWER-The Fowler's have a
home in Kentucky with the following policy limits:
• Coverage A $140,000
• Coverage B $90,000
• Coverage C - 24 months
• Option ID $20,000
If the home has an in-ground swimming pool what is the most we
could pay?
$2,000 (page 3 COVERAGE B - PERSONAL PROPERTY
paragraph 1) states: We cover personal property usually situated at an
insured's residence, other than the residence premises, for up to $1,000 or
10% of the coverage B limit, which-ever is greater. - ANSWER-The insured has 2 beds,
2 couches, 2 chairs and 1 table that are normally
situated at the fishing camp. On a holiday weekend the insured brings an
extra blow-up mattress from his home in New Orleans to accommodate an
extra guest.
What is the most you could pay for the 2 beds, 2 couches, 2 chairs and
1 table?
$3,300. The wind damage to the roof is a covered loss $3,500
Temporary repairs are covered $300
Total $3,800
Less deductible <$500>
Payable $3,300
Temporary repairs are found in the policy on page 5, paragraph 2.
Temporary repairs are
Not an additional amount of insurance and they are subject to the deductible
but there is
"to protect the property from further immediate damage or loss." - ANSWER-10) If all
repairs have been completed what should the adjuster pay on this
loss?
$7,000
• Damage to drywall & paint $750 - covered
• Lawn mower $450 - covered
• Shelving $700 - covered
• Gun safe $800 - covered
• Hunting rifles $1,600 - covered (special limit does not apply)
