Reference no: EM132237666

Risk Management and Insurance

Scott has his home and personal property insured under an unendorsed Homeowners 3 (Special Form) policy. Indicate whether each of the following losses is covered. (Assume the policy has no deductible.) If the loss is not covered, explain why it is not. 1. Scott carelessly spills a can of paint while painting a bedroom. The wall-to-wall carpet must be replaced. 2. Water backs up from a clogged drainpipe, floods the basement, and damages some books stored in a box. 3. Scott’s house is totally destroyed in a tornado and his exceedingly valuable grand champion Pomeranian is killed. 4. During a frost warning, smudge pots from a nearby orange grove emit a dense smoke that settles on Scott’s newly painted Florida vacation home. 5. Scott is on vacation, and a thief breaks into his hotel room and steals a suitcase containing jewelry, money, clothes, an airline ticket and an expensive camera. 6. Scott’s son is playing baseball in the yard. A line drive shatters the living room window. 7. A garbage truck backs into the garage door, destroying it. 8. Defective wiring causes a fire in the attic. The home is heavily damaged and Scott will need to find temporary housing for three months. It is December and Scott decides that the best place to find temporary housing is in Florida. He decides to spend the three months in his Florida vacation home which would normally be rented. 9. Scott’s son, age 20 is attending college in another city. While he is home for Christmas his stereo is stolen from his dorm room. 10. During the winter, heavy snow damages part of the front lawn and it must be replaced. 11. During a windstorm, an elm tree in the yard blows over and must be removed. 12. The carpet was heavily damaged when Scott left the bath tub running while he answered the telephone. 13. The home is badly damaged in an earthquake. The yard is also damaged by a 3 foot wide fissure running through the front yard. 14. An icemaker in the refrigerator breaks and water seeps onto the flooring and carpets, causing considerable damage. 15. The home is located approximately one block from the Federal Court House and is damaged when a domestic terrorist tries to blow up the courthouse to protest the government’s use of force in the Middle East.