State Farm Fire Independent Policy Practice Exam

Which expense would not be covered under an HO-3 policy when a lightning strike kills a tree and damages the roof?

1. $150.00 to remove the tree from the roof

2. $400.00 to cut the tree up and haul it to the municipal landfill

3. $500.00 to repair the roof

4. $500.00 to replace the tree

The correct answer is: $500.00 to replace the tree

The correct answer is that the expense to replace the tree would not be covered under an HO-3 policy. HO-3 policies generally cover the dwelling and personal property for named perils, and typically, landscaping and trees are considered to be personal property with limited coverage. While expenses related to damage to the home, such as roof repairs, and liabilities associated with the tree's impact can be covered, replacing the tree itself falls outside the scope of standard coverage. For example, the costs associated with removing the tree from the roof and cutting it into manageable pieces may be necessary for immediate safety and repair of the structure, and hence they would likely be covered under the policy. Furthermore, repairs to the roof itself are also part of the dwelling coverage. Replacement of the tree, however, is generally regarded as a form of landscaping expense and does not qualify for coverage under most homeowners policies. This distinction clarifies why replacing the tree is not included in the compensation provided by an HO-3 policy.