Chapter 6 - homeowners policy
An insured has an HO-3 policy with a Coverage A limit of $200,000. What is the maximum amount the policy will pay if a detached garage burns down, including the amount provided for the cost of debris removal expenses?
$21,000
An insured with a $500,000 HO-5 policy incurs $1,500 in damages due to a flood destroying the wood flooring. The policy deductible is $250. The policy will pay:
0
The Business Pursuits Endorsement is commonly added to Homeowners policies to insure which professional?
Teachers
Under a Homeowners policy, medical payments coverage will apply to medical expenses incurred after an accident within:
3 years
The HO-3 covers losses to other structures causes by which of the following perils?
Abrupt collapse from defective construction materials
Which statement about watercraft coverage provided by a Homeowners policy is correct?
A $1,500 special limit applies to watercraft damaged by a covered peril
A Broad Form Homeowners policy protects the insured's personal property:
against named perils
A Broad Form Homeowners policy would cover which of the following losses?
Building glass breakage caused by an earthquake
Personal liability coverage provided by a Homeowners policy would cover which of the following?
Bodily injury to a guest caused by the insured's pet dog
Under a Homeowners policy, which of the following payments are paid in addition to the limits of liability?
Claim expenses when a suit is brought against the insured for bodily injury damages
Under the Homeowners forms, Coverage C provides which type of coverage?
Contents and personal property
R owns a home insured on an HO-3 policy and rents out a suite over a detached garage to tenants. R's furniture used to furnish the suite is:
Covered up to $2,500 as an Additional Coverage
Section II of a Homeowners policy would not provide liability coverage for:
Damage to the property of others arising out of the insured's business pursuits
The definition of fungi provided by the Limited Fungi, Wet or Dry Rot, or Bacteria Endorsement of a Homeowners policy includes all of the following, except:
Fungi intended for consumption
A Broad Form Homeowners policy would cover all of the following personal property losses, except:
Furniture lost due to a mudslide
A mobile home may obtain property insurance in which of the following ways?
HO-2 or HO-3 policy with the Mobile Home Endorsement
New home buyer S called an agent and requested the broadest coverage available for S's new home, including open perils coverage for personal property. Which policy would the agent recommend?
HO5
Under a Homeowners policy, personal liability coverage would exclude coverage for all of the following injuries, except:
Injury to a guest who falls down the stairs
Under Section II of a Homeowners policy, which of the following statements about the Damage to Property of Others Additional Coverage is not correct?
It duplicates coverage that is included in Section I
Which of the following is true regarding an unendorsed HO-4?
It provides named perils coverage on an actual cash value basis
Under a Homeowners policy, which statement about personal property coverages is incorrect?
Money is covered up to $500 per occurrence on an unendorsed policy
K owns and occupies a single-family dwelling that K insures on an unendorsed Special Form Homeowners policy for $250,000 with a $1,000 deductible. K has a large structure at the back of the lot that K uses for a manufacturing business. If a fire loss results in $20,000 in damage to the structure, plus an additional $10,000 for debris removal expenses, K's Homeowners policy will pay:
Nothing
Coverage C of the HO-5 offers a special limit of coverage for which of the following types of property?
Property off-premises used primarily for business purposes
V owns a home in good condition that is protected by an HO-2 for $300,000. V lives in the home and uses a detached structure on the premises for rental purposes. All of the following statements about property coverage provided by V's policy are correct, except:
The HO-2 covers losses to the dwelling on an open perils basis
Which of the following best describes coverage options an insured has when an Earthquake Endorsement is attached to an HO-3 policy?
The insured may opt in to coverage for exterior masonry veneer
Under Coverage C special limits of liability, Homeowners policies cover:
Theft of furs and jewelry up to $1,500
Insured locations under a Homeowners policy include all of the following, except:
Vacant farm land
after an accident that causes bodily injury, section II of a homeowners policy will cover the costs of first aid provided to all of the following parties EXCEPT
an insured injured on the residence premises
On a Special Form Homeowners policy, the dwelling and other structures are insured against which perils?
open perils
under coverage C of a homeowners policy, losses to all of the following may be covered EXCEPT
property of a tenant
as defined by homeowners policies, a business include all of the following EXCEPT
volunteer activity