8. Homeowners - Section I: Property Coverage

An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1,200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay?

$1,000

An insured suffers a windstorm loss in which the insured's driveway is blocked by two of the insured's trees and two of the neighbor's trees. The total amount of the removal adds up to the following: three trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss?

$1,000

An insured has a standard HO-4 policy with a $30,000 limit of coverage for personal property. While he was traveling, a fire in his hotel destroys clothes and luggage with a replacement value of $10,000 and jewelry with a replacement value of $10,000. Disregarding any deductible, and assuming a depreciation of 20% has occurred in both properties, what amount is the insurer obligated to pay?

$16,000

A grave marker was damaged by vandals. It would cost $3,000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay?

$3,000 homeowners 2000 policy will pay up to $5,000 for grave markers

How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card?

$500

Under additional coverages for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services?

$500

All of the following are special personal property limits under a homeowners policy EXCEPT $1,500 for trailers not used with watercraft $2,500 for theft of firearms $500 for business personal property on the insured premises $1,500 for securities, accounts, deeds, and evidences of debt

$500 for business personal property on the insured premises

Which loss listed below would be fully covered by a homeowners policy? $24,000 bass boat destroyed in a tornado $5,000 firearm collection stolen $2,000 silver tea set stolen $1,200 pedigreed golden retriever stolen

2,000 silver tea set stolen

An insured with a Homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for how many days?

30 days

Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is

50% of the amount provided as Coverage A.

An insured works outside the home. The insured's sister lives with him and cares for his 4 children. When his home was severely damaged by fire, they move into an apartment while repairs are being made. The largest apartment available in the area has 2 bedrooms, so the insured's sister stays in a motel while the repairs are made. How much will the HO3 pay for their additional living expenses? Nothing All of the expense up to the Coverage D limit The cost of renting and apartment, but not the cost of the motel room The cost of renting the apartment, and 50% of the cost of the motel

All of the expense up to the Coverage D limit

How much is covered for debris removal under the HO property additional coverages?

All reasonable costs. If the debris was caused by a peril that is insured against, the reasonable cost of the debris removal is paid by the insurer

The purpose of the California residential property disclosure statement includes all of the following EXCEPT

Becomes a part of your residential property insurance policy

Homeowners polices provide coverage for

Business property while on the residence premises

Which of the following is NOT a primary property coverage in homeowners coverage? Dwelling Other structures Loss of use Collapse

Collapse The primary coverages are Coverage A - Dwelling, Coverage B - Structures, Coverage C - Contents, and Coverage D - Loss of Use. Collapse is an additional coverage.

With regards to a homeowners policy, which coverage provides for indirect or consequential losses?

Coverage D

The homeowners policy covers collapse caused by all of the following EXCEPT Hidden insect or vermin damage Weight of too many people attending an event hosted in the house Foundation cracks Weight of snow

Foundation cracks

The additional living expense coverage on homeowners policies

Is intended to allow the family to maintain its normal standard of living

All of the following are true of Coverage B - Other Structures EXCEPT Land where the other structures are located is not covered It must be added by endorsement to a homeowners policy This coverage is not applicable on the HO-4 policy form The amount of coverage provided by coverage B is an amount equal to 10% of Coverage A

It must be added by endorsement to a homeowners policy

Which of the following is the type of property NOT covered by the homeowners policy? Dwellings Materials and supplies Attached structures Land on which the property is located

Land on which the property is located

All of the following are major coverages included in the homeowners policy EXCEPT Dwelling Loss of use Loss of income Personal property

Loss of income

Coverage for all of the following is found in Section I of a homeowners policy EXCEPT Dwelling Other structures Personal property Personal liability

Personal liability

The amount an insurer will pay under Coverage D (Loss of Use) depends on

The amount of coverage on the dwelling

A neighbor's tree has fallen into the insured's yard. The insured's homeowners policy will only pay to remove the tree if The damage is more than $1,000. The neighbor has no homeowners insurance. The tree has caused damage to the insured's vehicle. The tree is blocking the driveway.

The tree is blocking the driveway