State Farm Fire Independent Policy Practice Exam

True or False: Building materials stored in a garage for a barn under construction are covered under Coverage A of the HO-3 policy.

1. True

2. False

The correct answer is: False

Building materials stored in a garage for a barn under construction are not covered under Coverage A of the HO-3 policy, which focuses on the structure of the dwelling itself that is designed for residential use. Coverage A specifically includes the home and any attached structures, but it generally does not extend to materials meant for buildings under construction that are not classified as part of the residence. The HO-3 policy typically has certain limitations and exclusions regarding materials and equipment intended for new construction or renovations. Thus, the materials stored in the garage, as they pertain to a barn which is an outbuilding and not the primary dwelling, would not fall under the protections of Coverage A. This reflects the policy’s intent to insure the primary living structure rather than construction components or materials meant for separate buildings.