State Farm Fire Independent Policy Practice Exam

Under an HO-3 policy, which type of loss does not typically have a deductible?

1. A. Credit Card, Bank Fund Transfer Card, Forgery and Counterfeit Money.

2. B. Fire Department Service Charges.

3. C. Rekeying locks after keys are stolen.

4. D. Debris Removal Charges.

The correct answer is: B. Fire Department Service Charges.

In the context of an HO-3 homeowners insurance policy, fire department service charges are generally not subject to a deductible when a claim is made. This means that if a fire department charges for their services in extinguishing a fire at your property, the insurance will typically cover this expense fully without deducting any amount from the claim. Fire department service charges are specifically stated in many homeowners insurance policies as a covered expense that can be claimed in addition to property loss or damage. This reflects the policy's intent to support homeowners in maintaining safety and mitigating hazardous situations, ensuring that they are not financially penalized for emergency response services. While other options like credit card fraud, rekeying locks, and debris removal often carry deductibles associated with claims, fire department service charges are a distinct category designed to ease the financial burden during emergencies, hence the absence of a deductible.