Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which of the following is excluded from coverage under a Tenants Comprehensive policy regarding the tenant's own property?

1. Damage to personal belongings due to fire

2. Damage to the exterior of the building caused by vandalism

3. Loss of property from theft

4. Damage from a sudden accidental discharge of water

The correct answer is: Damage to the exterior of the building caused by vandalism

The correct choice is recognized as being excluded from coverage because a Tenants Comprehensive policy is designed specifically to protect the tenant’s personal property within the rented space. While the tenant's personal belongings, such as furniture or electronics, would be covered for certain risks like fire, theft, or water damage if they occur within the unit, damage to the exterior of the building typically falls under the responsibility of the landlord or the building's insurance policy. This separation of coverage helps delineate responsibilities between tenants and property owners, making it clear that the tenant is not responsible for damages caused to parts of the property they do not own or control. In contrast, damage to personal belongings due to fire, loss of property from theft, and damage from a sudden accidental discharge of water are events that can occur inside the tenant’s premises, making them relevant to the tenant’s insurance needs. Thus, the focus of the Tenants Comprehensive policy is primarily on the tenant’s own property rather than structural or exterior damage to the building itself.