Alabama Property and Casualty Practice Exam

How would an HO-8 respond to a loss due to the weight of ice and snow?

1. The loss would be covered

2. The loss is not due to a covered peril

3. It would cover the functionally equivalent cost of repairs

4. The loss is excluded as a predictable loss

The correct answer is: The loss is excluded as a predictable loss

The HO-8 policy, known as the modified coverage form for dwelling insurance, is designed primarily to provide coverage for older homes that may not meet current building codes or replacement costs. One of the key features of the HO-8 policy is that it is often designed to cover losses from specific perils and may include limitations on coverage, focusing particularly on older structures and specific circumstances. When it comes to losses due to the weight of ice and snow, the HO-8 policy typically does not include coverage for losses that are considered predictable, such as damage caused directly by the accumulation of ice and snow or other gradual decay processes. Insurers often view these types of events as maintenance issues rather than sudden, unintentional occurrences that would fall under the coverage of the policy. Since the weight of ice and snow can generally be expected—especially in regions with seasonal weather patterns—the occurrence can be considered predictable. This predictability results in exclusions in many homeowners’ policies, including the HO-8, meaning that such losses would not be covered under this specific dwelling insurance form. Therefore, this reflects why the correct response highlights that the loss is excluded as a predictable loss.