Which statement is TRUE regarding John's plumbing damage?

The correct statement regarding John's plumbing damage is that the damage would be covered under an HO-3 homeowners insurance policy, which typically includes coverage for sudden and accidental damage to plumbing systems, unless specific exclusions apply.

In the context of homeowners insurance, an HO-3 policy generally covers a wide range of perils unless they are expressly excluded. Coverage includes damage from plumbing mishaps, like ruptured pipes, provided the damage occurs suddenly and unintentionally.

While conditions for coverage may vary depending on the insurance company's policies and specific circumstances, it is important to note that the mere act of not shutting off the water supply does not typically void coverage for damage that results from a covered peril, such as a burst pipe. The essence of homeowners insurance is to protect against unforeseen and accidental incidents, aligning with the principles of risk transfer and rehabilitation of the insured property.

Understanding this context aids in recognizing that simply failing to mitigate the damage by shutting off the water supply might not negate coverage under an HO-3 policy for plumbing-related claims.