Registered Insurance Brokers of Ontario (RIBO) Practice Exam 2025 - Free RIBO Practice Questions and Study Guide

An insurance policy typically does not cover damages due to negligence when regular maintenance is not performed. Negligence often falls within the responsibility of the insured to take necessary precautions and maintain their property or investments. Insurance policies expect policyholders to uphold a certain standard of care to prevent losses. If the insured fails to perform regular maintenance, that can be seen as a failure to mitigate risks and protect their property, leading to damages that the policy may not cover.

In contrast, damages resulting from natural disasters are usually classified as unforeseen events and are often covered under specific terms of policies, unless explicitly excluded. When damages are caused by a third party, the affected party can pursue claims against that third party, and their own policy may not need to respond. Additionally, while failing to file a claim could result in complications, it doesn't inherently preclude coverage for existing damages; rather, it may affect the ability to seek redress.