In some states, which additional perils may be covered under FAIR?

• A. Crime, sprinkler leakage, and earthquakes.
• B. Tornadoes and floods only.
• C. Hurricanes and volcanic eruptions.
• D. None of the above.

Answer: (A)

This item tests which extra perils can be added to a FAIR plan in some states. FAIR plans provide basic homeowners coverage for those who can’t get it in the standard market, and in certain states they allow expansion to include additional perils. The set that is commonly offered as add-ons includes crime, sprinkler leakage, and earthquakes. Crime coverage protects against theft or vandalism that might not be covered otherwise, sprinkler leakage handles water damage from plumbing or sprinkler systems, and earthquakes are a high-risk peril often added separately due to its potential severity. The other options describe perils that are not typically combined as the added coverages in FAIR plans, so they don’t reflect the common expanded offerings.