State Farm Fire Independent Policy Practice Exam

In case of tree removal, under which condition are costs covered by an HO-3 policy?

1. If the tree fell on a covered structure

2. If the tree is entirely in the yard

3. When damage is reported

4. All removal is covered regardless of situation

The correct answer is: If the tree fell on a covered structure

The homeowners insurance policy known as HO-3 provides coverage for specific scenarios involving tree removal. Costs associated with tree removal are covered when the tree has fallen on a covered structure, such as a home or other insured property. This is because the policy is designed to protect against damages that directly impact your dwelling and other structures on your property. This stipulation ensures that homeowners are protected from potential damage caused by fallen trees, which could lead to costly repairs or jeopardize the safety of the dwelling. While tree removal that occurs due to other situations may not be covered, the significant impact of a tree falling on a covered structure clearly establishes the need for such coverage. The other conditions do not trigger coverage under an HO-3 policy. If a tree is entirely in the yard but has not caused damage, or if the damage is reported without the presence of a covered loss, those situations would not lead to reimbursement for removal costs. Additionally, coverage is not blanket or unconditional, as it specifically pertains to damage inflicted on insured structures by fallen trees.