Florida 20-44 Resident Personal Lines Agent License Practice Exam Prep & Study Guide

For an HO-2 policy, which is a type of homeowners insurance known as a broad form policy, coverage includes a range of named perils for personal property. If Jay accidentally destroys Lisa's new television set, the action falls under the personal liability provisions and specific coverage for damage to property of others.

Under Section II of the homeowners policy, there is coverage for voluntary property damage that allows for payment to cover accidental damage to someone else's property. In this case, since the television set is valued at $450 and the damage was unintentional, Jay’s homeowners insurance would respond by providing coverage for the full value of the damage, assuming the policy limits are sufficient to cover that amount.

This is a key feature of the HO-2 policy, as it emphasizes the insurer's commitment to covering damages resulting from accidental actions of the policyholder that affect others' property. Therefore, the correct response indicates that this damage will be handled in full under the terms of the policy due to it being classified as a voluntary act of property damage, aligning with the provisions established in the policy.