Humber/Ontario Real Estate Course 1 Exam Practice

In the case of water damage due to a roof defect under warranty, what is covered?

1. The defect is covered if it occurs anytime during the 7-year warranty period

2. The defect is covered, but secondary damage, such as to clothing, is not

3. The defect and any personal property damaged are covered

4. Only defects caused by natural events are covered

5. The defect is covered only within the first 12 months

6. The defect is not covered at all under the warranty

The correct answer is: The defect is covered, but secondary damage, such as to clothing, is not

The correct choice indicates that while the roof defect is covered under warranty, secondary damages incurred as a result, such as damage to personal belongings like clothing, are not covered. This reflects the common principle in warranties that they generally cover the primary issue, which in this case is the defect itself, but do not extend to additional damages that might arise from that defect. Warranties usually focus on the workmanship and materials directly tied to the structure or entity under warranty. In this scenario, while the roof defect may lead to water damage, claims for repairs to personal items are typically excluded. This distinction between primary defects and secondary damages is crucial in understanding warranty terms in real estate. The other choices illustrate various misconceptions about warranty coverage. They either propose a broader scope of coverage than is typically provided or imply limitations that do not accurately represent standard warranty practices.