All of the Following Losses Are Covered in an HO-2

question 49

Multiple Choice

All of the following losses are covered in an HO-2 policy except:

• A)damage done to the house by neighborhood vandals
• B)damage done to shrubbery during a hostile fire
• C)loss of use of the property following a hostile fire
• D)damage done to the building and contents caused by a flash flood

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Definitions:

Loan

A financial agreement where a borrower receives a specific amount of money from a lender and is obligated to repay it back with interest over a predetermined period.

Maturity Matching

A strategy in finance where the duration of investments in assets is matched with the duration of liabilities or obligations, aiming to reduce financial risk.

Net Operating

Refers to the profit a company makes from its usual business operations, before taxes and interest, indicating the financial health of the company's core activities.

Short-term Rates

Interest rates applying to loans or debt instruments with maturities typically less than one year; often influences other rates in the economy.