Registered Insurance Brokers of Ontario (RIBO) Practice Exam

What type of loss would be covered only while on the insured's premises under the Homeowners Comprehensive policy?

1. Theft of jewelry

2. Loss of tools while being used off-site

3. Stolen tools from the garage

4. Property damage due to fire

The correct answer is: Stolen tools from the garage

The choice regarding stolen tools from the garage is indeed accurate because it refers to a situation where the theft occurs within the insured's premises. Homeowners Comprehensive policies typically provide coverage for personal property against theft, but this coverage is generally limited to items that are physically located on the property at the time of the loss. Tools kept in a garage are considered part of the insured’s property and would fall under this coverage as long as they are stolen while still on the premises. The other options reflect situations that either do not pertain to on-premises coverage or involve scenarios that fall outside typical homeowners policy parameters. For example, theft of jewelry might be covered when stolen from anywhere, loss of tools while being used off-site does not provide on-premises protection, and property damage due to fire typically does not hinge on theft parameters, thus may not relate specifically to the concept of "while on the premises."