Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What type of coverage does a homeowners broad form provide?

1. All risks for contents

2. Named perils coverage for buildings

3. All risks coverage for buildings and named perils coverage for contents

4. Liability coverage only

The correct answer is: All risks coverage for buildings and named perils coverage for contents

A homeowner's broad form policy is designed to provide comprehensive coverage that balances protection for both the structure of the home and the personal belongings within it. This type of policy offers "all risks" coverage for buildings, meaning it protects against a wide range of potential perils unless specifically excluded in the policy. Simultaneously, it offers "named perils" coverage for contents, which means that only the specific risks listed in the policy are covered for personal belongings inside the home. This combination makes the broad form an attractive option for homeowners who want extensive protection for their property while still enjoying a degree of coverage for their personal items against named risks, allowing them to manage their insurance needs efficiently. This level of coverage reflects a balance of security and specificity, catering to different aspects of a homeowner's insurance requirements.