Florida Insurance Claims Adjuster License Practice Exam

Which situation is not covered for liability under an HO3 policy?

1. Mike used a 4-wheel ATV to haul yard clippings and accidentally runs into a neighbor

2. Mike rents the community center for his son's wedding reception and a guest sues Mike for injuries

3. Mike owns a 16 foot. 100 H.P. outboard motor boat and has an at-fault accident that destroys another boat

4. Someone falls at the house Mike is planning to live in after it is built

The correct answer is: Mike owns a 16 foot. 100 H.P. outboard motor boat and has an at-fault accident that destroys another boat

An HO3 insurance policy typically provides liability coverage for bodily injury and property damage caused by your actions or the actions of someone in your household. Option A and D are both covered under this policy, as they involve Mike or a member of his household causing the damage or injury. On the other hand, option B involves a third party suing Mike, which is also covered under an HO3 policy. However, option C involves Mike's own actions causing damage with a separately insured item (the boat) and is not covered under an HO3 policy. This is because HO3 policies only cover liability for events that occur on the insured property, and a boat is not typically considered as part of Mike's insured property.