State Farm Fire Independent Policy Practice Exam

During a hurricane evacuation, which of the following incurred costs would be covered by the HO-3 policy?

1. Rent for the secure storage facility

2. Wages for helpers loading furniture

3. Hotel expenses

4. All of the above

The correct answer is: All of the above

The HO-3 policy, which is a type of homeowners insurance, provides coverage for various costs incurred during unexpected events, including hurricane evacuations. When considering the costs associated with such an evacuation, it's essential to recognize the coverage limitations and protections afforded by the policy. Hotel expenses during a mandatory evacuation are covered under the HO-3 policy. When homeowners are forced to leave their residence due to a peril like a hurricane, the policy typically includes coverage for reasonable additional living expenses, which can encompass lodging costs required to maintain a temporary living situation. In addition, rent for a secure storage facility may also be covered if it is deemed necessary for safeguarding personal belongings from potential damage during a storm. This type of storage is often considered a part of steps taken to mitigate damage, which the policy may support. Furthermore, wages for helpers loading furniture can be covered as well, as these expenses may fall under reasonable costs incurred to prepare for the evacuation, helping to protect personal property from potential harm. As a result, all these incurred costs can be considered reasonable and necessary due to the situation at hand, illustrating the comprehensive nature of the HO-3 policy when addressing the unique challenges posed by hurricane evacuations.