Which loss is NOT excluded by the Homeowners' Basic Form's coverage for theft?

The concept of theft coverage in the Homeowners' Basic Form is designed to protect insured individuals against loss from theft within specific parameters. The correct choice reflects a scenario likely to be covered under such policies.

When an individual is vacationing and has personal property, like a camera, with them, it is typically regarded as being insured away from the primary residence. Homeowners' insurance often provides coverage for personal belongings while they are temporarily away from the home, as long as the loss occurs under circumstances covered by the policy. This means that theft of the camera while on vacation would typically not be excluded.

In contrast, the other scenarios present situations that tend to fall under exclusion clauses commonly found in the Homeowners' Basic Form. For example, theft of personal effects that are easily accessible to others, such as a ring accessible to tenants, or tools left unattended at a cottage can pose a higher theft risk, leading to those being excluded from coverage. Additionally, items given to a friend may not be covered since they are not in the possession of the insured, thus making the loss outside of the typical coverage parameters.

In summary, the theft of the camera while on vacation is included in coverage, aligning with the intent to protect property even when it is temporarily