Registered Insurance Brokers of Ontario (RIBO) Practice Exam

In this scenario, the lack of coverage for the wedding ring is attributed to the nature of most tenant insurance policies, which often exclude certain types of losses, especially related to personal property that is inadvertently damaged or lost in a manner not typically covered by standard insurance.

Typically, tenant insurance covers personal belongings against specific risks like fire, theft, or vandalism. However, accidental loss, such as a ring being flushed down the toilet, generally falls under exclusions since insurance is not designed for losses that arise from mishaps or negligence.

Additionally, even if the policy were to cover personal property, the deductible must also be considered. In this case, with an $8000 ring and a $500 deductible, if coverage were available, the nominal payout would be less than the value of the ring. However, since there is no coverage for this scenario, the situation leads to determining that the amount covered is zero, as the specific incident does not meet the requirements under most tenant policies.