Canadian Accredited Insurance Broker (CAIB) One Practice Exam

What does explosion coverage under a homeowners form typically cover?

1. All explosions regardless of cause

2. Damage caused by hot water heaters and domestic boilers not due to water hammer

3. Explosions from outdoor grills and fire pits

4. Damage due to firecracker explosions

The correct answer is: Damage caused by hot water heaters and domestic boilers not due to water hammer

Explosion coverage under a homeowners form typically focuses on specific types of incidents that can occur in and around a home. The correct choice highlights that this coverage includes damage caused by hot water heaters and domestic boilers, specifically addressing incidents that do not result from water hammer. Water hammer refers to the noise and jolt that occurs when a liquid in motion is forced to stop or change direction suddenly, which is not normally covered under explosion coverage. This coverage is crucial for homeowners as it provides protection against the risks associated with household appliances that can potentially fail and lead to explosive situations. Other scenarios, such as explosions from outdoor grills, fire pits, or firecracker explosions, often fall outside the standard coverage provisions in a homeowners insurance policy. These types of explosions may not usually be covered unless specifically included in the policy or endorsed by the insurer. Thus, the emphasis of explosion coverage on specific domestic appliances illustrates the intention to protect homeowners from common household hazards while distinguishing them from more whimsical or less frequent risks.