Florida Insurance Claims Adjuster License Practice Exam

How much will an insured's HO Policy pay for damage to a fence, gazebo, and tool shed under an HO-3 Policy?

1. $10,000

2. No coverage

3. $25,000

4. $20,000

The correct answer is: $20,000

An HO-3 policy typically covers both the dwelling and other structures on the property, such as fences, gazebos, and tool sheds. However, the amount of coverage for these other structures is usually limited to a percentage of the coverage for the dwelling. In this case, the HO-3 policy would cover up to $20,000 for damage to the fence, gazebo, and tool shed. Option A is incorrect because it is too low of a coverage amount. Option B is incorrect because there is coverage, but it is limited. Option C is incorrect because it is too high of a coverage amount.