State Farm Fire Independent Policy Practice Exam

If a picture falls and damages a statue under an HO-3 policy, what is the status of the coverage for the statue?

1. Apply under the falling object peril

2. Not apply, not an insured peril

3. Apply under the collapse peril

4. Not apply since it should have been insured under a personal articles policy

The correct answer is: Not apply, not an insured peril

Under an HO-3 policy, coverage for personal property is typically limited to specific named perils. The named perils under an HO-3 policy include a variety of risks, such as fire, theft, and vandalism, but they do not generally include damage resulting from a falling object unless that object is specifically listed. In this scenario, the damage occurs as a result of a picture falling and impacting the statue. The falling of the picture does not constitute a covered peril listed in the HO-3 policy. Therefore, since damage to the statue was caused by a falling object that does not fall under the category of covered perils, the statue would not be covered under the policy. The conclusion is that damage to the statue under these circumstances is not an insured peril, solidifying the status of the coverage.