Ch.5 Homeowners Policy

Section II Additional Coverages includes Damage to Property of Others for what limit of insurance?

$1,000

All of the following special limits of Coverage C are correct, except:

$2,500 for business property away from premises

The Water Back Up and Sump Discharge or Overflow endorsement provides how much coverage for damaged property?

$5,000 -This endorsement provides up to $5,000 of coverage for property directly damaged by water that backs up through sewers or drains or overflows from a sump pump.

Business means:

-A trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis. -Any other activity engaged in for money or other compensation, EXCEPT: -Volunteer activities for which no compensation is received other than expense reimbursement. -Home daycare services for which no compensation is received other than the mutual exchange of day care services. -Rendering home daycare services to a relative of an insured. -Any other activity not described above for which no insured receives more than $2,000 in compensation during the 12 months before the current policy term.

Residence Employee means:

-An employee of, or leased under an agreement to, an insured, whose duties are related to the maintenance or use of the residence premises. These duties include household and domestic services, such as those of a gardener or nanny. -A person who performs similar duties elsewhere that are not related to any business of the insured, such as a person hired to paint the insured's house, as long as the insured doesn't own a business that paints houses.

Property Removed

-Coverage is provided for loss to covered property by any cause while being removed from a premises endangered by a peril insured against. -Coverage applies for no more than 30 days while removed. For example, if a wildfire threatens the insured's home and property is removed, loss to the removed property that is caused by flood or earthquake would be covered during the first 30 days the property is removed. However, if flood threatened the insured's home, coverage wouldn't apply because the endangering peril is not a peril insured against.

Collapse

-Coverage is provided for the abrupt falling down or caving in of a building, or a portion of a building, if the building cannot be occupied for its intended purpose after the collapse. -Direct physical loss from collapse must be caused by a Coverage C named peril, hidden decay, hidden insect or vermin damage, weight of contents, equipment, animals, people, the weight of rain collecting on a roof, or the use of defective materials or construction methods. -The policy does not cover collapse of awnings, fences, patios, swimming pools, underground pipes, cesspools, etc., unless damage is the direct result of the collapse. -This coverage does not increase the limit of insurance that applies to the damaged property

Trees, Shrubs, and Plants

-Coverage is provided for trees, shrubs, plants, or lawns on the residence premises for the following perils: fire or lightning, explosion, riot or civil commotion, aircraft, vehicles not owned or operated by a resident of the residence premises, vandalism or malicious mischief, and theft. Coverage is NOT provided for any other peril, including windstorm or hail. -The limit of insurance is up to 5% of the Coverage A limit of liability and applies to all trees, shrubs, plants, or lawns. The most paid for loss to any one tree, shrub, or plant is $500. This limit is additional insurance. -No coverage is provided for property grown for "business" purposes.

Loss Assessment

-Coverage up to $1,000 is provided for the named insured's share of loss assessment charged during the policy period by a corporation or association of property owners. -The assessment must be made because of direct loss to property owned collectively by all members AND that was caused by a Peril Insured Against under this policy. This coverage is additional insurance.

Credit Cards, Electronic Fund Transfer Card, Forgery, and Counterfeit Money

-Coverage up to $500 is provided for the insured's legal responsibility because of theft or unauthorized use of credit cards, electronic fund transfer cards or access devices issued to an insured. -Loss to an insured caused by forgery, alteration of a check or negotiable instrument, or counterfeit money is also covered. -Exclusions exist for use of a covered card or device by a resident of the named insured's household, by a person entrusted with a card or access device, the insured's failure to comply with credit card requirements, business use of a card, or the insured's dishonesty. This coverage also includes defense.

HO-3 (Special Form)

-Dwelling (Coverage A) & other structures (Coverage B) insured on open perils basis (all perils insured unless excluded in policy) -losses to dwelling and other structures on replacement value basis. HO-3 excludes the following (under covg a & b): -collapse (except as provided by additional covgs), freezing of appliances or plumbing, heating, ac, or auto fire protective system, freezing thawing, pressure or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining wall, Theft in or to a dwelling under construction, including construction-related materials and supplies, Vmm (including ensuing loss, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss) Mold, fungus, or wet rot (unless resulting from accidental discharge or overflow of water or steam that is hidden from view) Wear and tear, marring, deterioration, mechanical breakdown, latent defect, inherent vice, smog, rust, corrosion, dry rot Smoke from agricultural smudging or industrial operations Pollution including discharge, dispersal, seepage, migration, or release of smoke, vapor, fumes, acids, or other chemicals unless such discharge is caused by a Coverage C Peril Insured Against, Settling, cracking, bulging, or expansion of foundation, walls, floors, pavements, patios, Birds, vermin, rodents or insects, Animals owned or kept by an insured -Coverage C (personal prop) insured on named perils basis which includes same named perils on HO-2 -Coverage C losses on ACV (includes losses to fence, driveway or walk cause by car owned/operated by insured) -burden of proof for coverage A & B falls to insurer because cvge provided on open perils basis -burden on proof for coverage C falls to insured to show which of 16 names perils caused loss

HO-5 Comprehensive Form

-Dwelling: Open perils & replacement value -Personal Property: open perils & Acv

HO-3 Special Form

-Dwelling: Open perils & replacement value -Personal property: named perils & acv

HO-8 Modified Coverage Form

-Dwelling: named perils & repair cost/market value (lesser of) -Personal property: named perils & acv

HO-2 Broad Form

-Dwelling: named perils & replacement value -Personal Property: named perils & acv

Civil Authority Prohibits Use

-If a civil authority prohibits the named insured from using the residence premises as a result of direct damage to neighboring premises by a peril insured against under the homeowners policy, the policy pays losses under Additional Living Expense and/or Fair Rental Value for no more than two weeks.

Fair Rental Value

-If a property loss covered by Section I of the policy makes that part of the residence premises rented to others unfit to live in, the policy pays for the fair rental value of such premises - less any continuing expenses - while it's unfit to live in -Payment is for the shortest time required to repair or replace the rented portion of the premises

Additional Living Expense

-If a property loss covered by Section I of the policy makes the residence premises unfit to live in, the policy pays for any necessary increase in living expenses incurred by the named insured to maintain the household's normal standard of living. -Payment is made for the shortest time necessary to repair or replace the damage. If the insured must relocate permanently, payment will be made for the shortest time it takes the insured to settle at the new location.

Other Structures on the Residence Premises - Increased Limits

-If the Coverage B limit of insurance is inadequate to insure all other structures on the residence premises (10% of Coverage A), this endorsement allows the insured to purchase increased limits for other structures listed in the endorsement. The increased limits generate an additional premium charge.

First Aid Expenses (Additional COverage)

-Includes expenses incurred by an insured for rendering first aid to others who sustain bodily injury covered under the policy. No coverage is provided for first aid to an insured.

Claim Expenses (Supplementary Payments) (Additional Coverages)

-Includes the insurer's expenses for defending a claim, along with reasonable expenses incurred by an insured at the insurer's request. -Also covered as claim expenses are premiums on bonds required in a suit defended by the insurer, the insured's actual loss of earnings up to $250 a day for assistance in the investigation or defense of a claim or suit, and post-judgment interest.

Coverage E - Personal Liability

-Insurance is provided for claims made and suits brought against an insured because of bodily injury or property damage caused by an occurrence for which the insurance applies. -The policy pays up to the limit of liability for the damages for which an insured is legally liable, including prejudgment interest awarded against an insured. -The policy provides a defense, at the insurer's expense, even if the suit is groundless, false, or fraudulent. The insurer may investigate and settle any claim or suit it decides is appropriate. The duty to defend ends when the policy limits have been exhausted by payment of a judgment or settlement. Payments for defense costs are made in addition to the limit of liability appearing on the declarations.

Ordinance or Law (Exclusions)

-Losses resulting from the enforcement of an ordinance or law regulating the construction, repair, remodeling, renovation or demolition of a building are excluded except what is provided in the additional coverage, Ordinance or Law.

Earth Movement (exclusions)

-Losses resulting from: earthquake, including land shock waves or tremors before and after volcanic eruptions, landslides, mudslides, mudflow, subsidence, or sinkhole, and any earth sinking, rising, or shifting. Direct loss by fire or explosion that ensues is covered. Loss by theft resulting from earth movement is also covered.

Motor Vehicle Liability

-No coverage is provided for "motor vehicle" liability if at the time of an occurrence, the "motor vehicle" involved in the loss was registered for use on public roads or wasn't registered but was required to be registered. -In addition, no coverage is provided for vehicles that are being operated in or practicing for racing, rented to others, used to carry people or cargo for a fee, or used for any business purpose. Exceptions to the exclusion, meaning coverage is given back, exist for the following: Vehicles in dead storage on an insured location, meaning they are physically unable to be driven, because their batteries have been removed and they're up on blocks. Vehicles used solely to service an insured's residence. Vehicles designed to assist the handicapped, so long as the vehicle is being used to assist a handicapped person, or it is parked on an insured location. A motorized golf cart used on a golfing facility for purposes approved by the facility or within a private residential community and used as approved by the community. Vehicles designed for recreational use off public roads IF they are not owned by an insured OR are owned by an insured and used on an insured location.

HO-4 Contents Broad Form

-Personal property: named perils & acv

HO-6 Unit-Owners Form

-Personal property: named perils & acv

Residence Premises means:

-The 1-family dwelling where the named insured resides. -The 2-, 3-, or 4-family dwelling in which the named insured resides in at least one of the family units. -That part of any other building where the insured resides. -The residence premises also includes other structures and the grounds at that location, such as the 5 acres upon which the insured resides, including the barn, detached garage, and swimming pool.

Limits of Coverage for Coverage D

-The automatic limits of insurance for Coverage D vary by the homeowners form of coverage: -30% of Coverage A for forms HO-2, HO-3, and HO-5 -30% of Coverage C for form HO-4 -50% of Coverage C for form HO-6 -10% of Coverage A for form HO-8

Glass or Safety Glazing Material

-The breakage of glass or safety glazing material that is part of a covered building, storm door, or storm window, including loss caused by earth movement. -Direct physical loss to covered property caused solely by the pieces, fragments, or splinters of broken glass or safety glazing material. -NO coverage is provided for loss occurring on the residence premises if the dwelling was vacant for more than 60 consecutive days before the loss, except coverage is provided for loss caused by earthquake. This coverage does not increase the limit of insurance that applies to the damaged property.

Ordinance or Law

-The insured may use up to 10% of the Coverage A limit of insurance for increased costs the insured incurs due to the enforcement of any ordinance or law that requires or regulates: -Construction, demolition, remodeling, renovation, or repair of that part of a covered building damaged by an insured peril. -The demolition or reconstruction of the undamaged part of a covered building, when that building must be totally demolished because of damage by an insured peril to another part of that covered building. -The remodeling, removal, or replacement of the portion of the undamaged part of a covered building to complete the remodeling, repair, or replacement to that part of the covered building damaged by an insured peril. -this is additional insurance

Insured means

-The named insured is the person or persons designated on the policy's declarations page and should be the party or parties holding deed to the property being insured. In situations where real property is owned by a trust, the named insured will be the trustee(s) living in the insured dwelling. -The named insured and his or her resident spouse if the resident spouse is a member of the named insured's household. -Other residents of the named insured's household who are: Relatives of the named insured, meaning they are related by blood, marriage, or adoption. Under the age of 21 and in the care of any insured -Full-time students living away at college if they: Are under age 24 and related to the named insured, Were a resident of the named insured's household before moving away to college, OR Are under age 21 and in the care of the named insured or a resident relative.

Coverage B - Other Structures

-The policy covers other structures on the residence premises that are set apart from the dwelling by a clear space. Structures connected to the dwelling by only a fence or utility line are considered set apart, for example, sheds, detached garages, built-in pools. -No coverage is provided under Coverage B for 4 types of property: Land, including land on which the other structures are located. Other structures rented or held for rental to anyone who isn't a tenant of the dwelling, unless the other structure is used solely as a private garage. Other structures from which any "business" is conducted. Other structures used to store business property that is owned by someone other than an insured or a tenant of the dwelling. -This insurance limit is 10% of the Coverage A limit of liability, does not reduce the Coverage A limit of liability, and may be increased by endorsement.

Coverage C - Personal Property

-The policy covers personal property owned or used by an insured while it's anywhere in the world -After a loss, and at the named insured's request, it covers property owned by others while it's on the residence premises occupied by an insured or property owned by a guest or residence employee while located in any residence occupied by an insured. -Coverage for property at another residence is limited. If personal property is usually located at an insured's residence other than the residence premises, coverage is limited to 10% of Coverage C or $1,000, whichever is greater. For example, property usually located in a student's dormitory or at the insured's summer home. This limit doesn't apply to property being moved because it's being repaired or rebuilt, located in a newly acquired principle residence during the first 30 days after being moved, or the residence premises is not fit to live in or store property in.

Debris Removal

-The policy will pay the named insured's reasonable expenses for the removal of debris of covered property if a covered loss occurs. -Payment is included in the limit of insurance for covered property that is damaged. If debris removal expenses and expenses for damaged property exceed the applicable limit of insurance, this coverage will provide additional insurance equal to 5% of the limit available for such expense. For example, the insured's shed burns to the ground. The Coverage B limit of liability is $10,000. This coverage will pay a total of $10,000 plus $500 ($10,000 times 5 %) for the replacement value of the shed plus debris removal expenses. -A limit of $1,000 applies for reasonable expenses to remove from the residence premises debris of the insured's trees felled by windstorm, hail, or the weight of ice, snow, or sleet.

Grave Markers

-The policy will pay up to $5,000 for grave markers, on or away from the residence premises, for loss caused by a peril insured under Coverage C. -This coverage does not increase the limits of insurance that apply to the damaged, covered property.

Insured Location means:

-The residence premises -The part of any other premises, structures, or grounds used by the insured as a residence if it is shown in the Declarations or acquired by the named insured during the policy period for use as a residence -Any premises described above used by the named insured, such as a boat slip -Any premises not owned by an insured and where the insured is temporarily residing, such as hotel rooms and summer vacation rentals -Vacant land, other than farm land, owned by or rented to an insured -Land owned by or rented by an insured on which a 1, 2, 3, or 4-family dwelling is being built as a residence for an insured -Individual and family cemetery plots or burial vaults of an insured -Any part of a premises occasionally rented to an insured for other than business purposes, such as a banquet hall where a wedding reception is hosted

Fire Department Service Charge

-This coverage pays up to $500 for the named insured's contractual liability to pay fire department charges incurred by a fire department that is called to save or protect covered property by a peril insured against. -Covered charges must be incurred by a fire department other than that of the jurisdiction in which the covered property is located. For example, a neighboring fire department is called to assist the fire department of the jurisdiction in which the insured property is located. This coverage is additional insurance, and the policy deductible does not apply.

Water Back Up and Sump Discharge or Overflow

-This endorsement allows the insured to buy back some coverage that is excluded under the Water Damage exclusion. It provides up to $5,000 of coverage for direct physical loss to property insured under Section I (Coverages A, B, and C) caused by water or waterborne material that: -baccks up thru sewer or drains or overflows from a sump, sump pump, or related equipment -Coverage is provided even if the sump overflow is caused by equipment breakdown. A special deductible of $250 applies and replaces any other deductible that may otherwise apply. Coverage doesn't apply if damage is caused by the negligence of an insured.

Landlord's Furnishings

-Up to $2,500 coverage is provided for appliances, carpeting, and household furnishings owned by the named insured and located in each apartment on the residence premises that is rented to others. -Coverage is provided for the 15 named perils (the Coverage C perils, with the exception of theft). This coverage does not increase the limit of insurance applying to the damaged property.

Water Damage (Exclusions)

-Water damage means flood, surface water, tidal water, overflow of a body of water, water or water-borne material that backs up through sewers or drains or that overflows from a sump pump, and water that exerts pressure on or seeps or leaks through a building, foundation, swimming pool, or other structure. Direct loss by fire, explosion, or theft resulting from water damage is covered. Water damage is excluded whether caused by human, animal, or natural forces.

Reasonable Repairs

-When the insured's property has been damaged by a covered peril, this coverage pays the reasonable costs incurred by the named insured to take necessary measures to protect covered property damaged by a covered peril against further damage. For example, a tree falls on the dwelling's roof. The insured's expenses to place a tarp over the hole in the roof would be covered. This coverage does not increase the limit of insurance that applies to the covered property.

Section II Conditions: Limit of Liability

-a per occurrence limit applies to losses covered under Coverage E (personal liability) and a per person limit applies to losses covered under Coverage F (Medical payments to others)

HO-4 (Contents Broad Form)

-aka renter's or tenant's homeowners policy -no coverage for dwelling or other structures -insures personal property (Coverage C) against loss from 16 named perils in HO-2 & HO-3 forms -Personal property losses are valued on ACV basis (just like in HO-2 & HO-3 forms)

Deductibles

-applies to all losses unless noted in the policy -policy will only pay part of the total of all loss payable under Section I that exceeds the deductible amt shown in the declarations (subject to the policy limits) -the standard homeowners policy deductible is $250, an insured may choose a higher or lower deductible. As the deductible increases, the policy premium decreases. For example, the premium for a policy with a $1,000 deductible will be less than a premium for a policy with a $250 deductible.

Personal Property Replacement Cost Endorsement

-changes the valuation method for most property insured under Coverage C from actual cash value (ACV) to replacement cost. It also applies to awnings, outdoor antennas and equipment, carpeting, and household appliances. -If the following classes of property are separately described and specifically insured in this policy and NOT subject to agreed value loss settlement, the endorsement also applies to jewelry, furs and fur garments, cameras and related equipment, musical instruments and related equipment, silverware, goldware, pewterware, and golfer's equipment. Other classes of property separately described and specifically insured are NOT subject to this endorsement. - Property NOT eligible for coverage under this endorsement - and that is subject to actual cash value loss settlement includes antiques, fine arts, paintings and similar articles of rarity or antiquity that cannot be replaced, memorabilia, souvenirs, collectors' items, articles whose ages and histories contribute to their value, articles not maintained in good or workable condition, and articles that are outdated or obsolete and are stored or not being used. -This endorsement only changes loss valuation - it doesn't change other policy provisions, including perils insured against or exclusions.

Eligibility for form: HO-6

-condo or cooperative unit may be rented or owned

Earthquake Endorsement

-coverage for a loss caused by earthquake, including land shock waves or tremors before, during, or after a volcanic eruption, is provided to property insured under Coverage A (Dwelling), B (Other Structures), and C (Personal Property). A single earthquake is defined as 1 or more earthquake shocks that occur within a 72-hour period. -The coverage does not cover loss resulting from flood of any nature, or the cost of filling land. A deductible that is a percentage of Coverage A (Dwelling) or Coverage C (Personal Property), whichever is greater, is included.

Selected Homeowner Section II Endorsements Home Day Care Endorsement

-endorsement extends Section I and II coverages to the home day care "business" described in the schedule provided it is conducted by an insured on the residence premises. -The endorsement typically imposes a policy year aggregate limit for the sum of personal liability and medical payments to others losses. The limit corresponds to the Coverage E limit shown in the Declarations, with a per person per accident sublimit for day care- related medical expenses equal to Coverage F. -The endorsement does not cover injury to any employee arising out of the "business," as described.

Section II Exclusions (Coverage E & F)

-expected/intended injury -business -professional services -insured's premises is NOT an insured location -war -communicable disease -sexual molestation, corporal punishment, or physical or mental abuse -controlled substance

Selected Homeowner Section II Endorsements Business Pursuits Endorsement

-extends liability coverage for the insured's involvement in a business that the insured does not own, have financial control over, or have a partnership interest in -The pursuit must be named in the endorsement, and is commonly added for those in the teaching, sales, and clerical professions.

Section II Exclusions Only Applying to Coverage F - Medical Payments to Others

-injuries to resident employee if occurring off premises and not in course of employment -work comp or similar law -injuries covered by nuclear energy liability policy -anyone who regularly resides on an insured location

Section II Conditions: Severability of INsurance

-insurance applies separately to each insured: however, this condition doesn't increase the limit of liability per any one occurence

Mobile Home Insurance

-insurance for mobile homes may be insured on a homeowners policy by adding a Mobile Home endorsement -If the insurer doesn't allow the addition of such an endorsement to its homeowners policy, a separate Mobile Homeowners policy must be written. -Under ISO (Insurance Services Office) rules, an owner occupied mobile home may be covered under an HO-2 or HO-3 by endorsement. -The endorsement amends the definition of Coverage A (Dwelling) to include a mobile home. Tenants of a mobile home may insure their personal property under an HO-4 if the insurer's underwriting guidelines permit.

Section II Exclusions Only Applying to Coverage E - Personal Liability

-loss assessment -property damage to property owned by insured -property damage to property in insured's care, custody, or control -workers comp and similar laws -injuries and damages covered by nuclear energy -injuries sustained by an insured

Exclusions Applying to Section II in its Entirety

-motor vehicle liability -aircraft liability -hovercraft liability

Section II Conditions: Duties after Occurrence

-named insured or another insured is responsible for performing the following duties. The insurance company has no duty to provide coverage if the named insured's failure to comply with the following duties is prejudicial to the insurance company Give the following information in written notice to the insurer or its agent as soon as is practical: The policy number The identity of the named insured Reasonably available information about the time, place, and circumstances of the occurrence Names and addresses of any claimants and witnesses Cooperate with the insurer in the investigation, settlement, or defense of any claims Promptly forward any notice, demand, summons, or other process to the insurer At the insurer's request, aid the insurer in making a settlement, pursuing subrogation attempts, taking the case to court, and procuring evidence With respect to Damage to Property of Others, submit to the insurer, within 60 days after a loss, a sworn statement of loss and show the damaged property No insured shall, except at his/her own expense, voluntarily make payment, assume obligation, or incur expense other than for first aid at the time of bodily injury

Selected Homeowner Section II Endorsements Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement

-overs the insured's liability exposure in the event that a third party claims illness as a result of exposure to mold and the insured is deemed liable for the illness. -The basic liability limit is currently $50,000 on an annual aggregate basis during the policy period for all fungi, wet or dry rot, or bacteria related damages. Insurers can also offer a higher optional liability coverage limit of $100,000.

Eligibility for forms: HO-2, HO-3, HO-5, and HO-8

-owner occupied dwelling with no more than 4 residential units -named insured must live in one of the units

Coverage F - Medical Payments to Others

-policy will pay necessary medical expenses that are incurred or medically ascertained within 3 years from the date of an accident causing bodily injury. Legal liability, negligence, and fault do not trigger this coverage. Medical payments to others is a goodwill coverage and designed to discourage the submission of liability claims. -Medical expenses are the reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral services. Coverage does not apply to the insured or regular residents of the insured's household (except residence employees). However, coverage does apply to: A person on the insured location with the permission of an insured. A person off the insured location if the bodily injury: Arises out of a condition on the insured location or the immediate surroundings. Is caused by the activities of an insured. Is caused by a residence employee in the course of employment by the insured. Is caused by an animal owned by or in the care of an insured.

HO-5 (Comprehensive form)

-provides broadest coverage of any homeowner form -Coverage A (dwelling), Coverage B (other structures), Coverage C (personal property) provide insurance on open perils basis -losses to dwelling & other structures on replacement cost basis -loss on personal property on ACV basis

HO-2 (broad form)

-provides named perils coverage for the dwelling (Coverage A), other structures (Coverage B), and personal property (Coverage C). Named perils are: -fire/lightning, windstorm/hail, explosion, riot/civil commotion, aircraft, vehicles, smoke, volcanic eruption, vmm, theft (limited), falling objects, weight of ice/snow/sleet, accidental discharge/overflow of water/steam, freezing, damage from artificially generated electrical current, cracking/burning/bulging of HVAC -losses under coverages A & B on replacement cost basis -losses on coverage c valued on ACV basis (personal property still provided on same named perils basis as covg a and b) -doesnt cover loss to fence, driveway or walk caused by vehicle owned/operated by insured

HO-6 (Unit Owners Form)

-provides named perils coverage to owner of condo or cooperative unit -Coverage A & Coverage C included (no coverage B). However, if condo/coop unit owner wants to insure other structures, value can be included in coverage a limit of insurance -form insures real property (building and building items) for which insured is responsible under the bylaws of the condo association or coop corp. -insures personal property of insured while theyre anywhere in the world

Eligibility for form: HO-4

-residence or apartment is rented, not owned

Selected Homeowner Section II Endorsements Home Business Endorsement

-rovides for both business property and liability coverages for a variety of home businesses. The business must be owned by the named insured, or by a partnership, joint venture, or organization comprised solely of the named insured and resident relatives. -It also includes coverage for premises operations, advertising injury, and personal injury. However, there is no coverage for professional services.

Coverage D - Loss of Use

-three types of coverage provided (additional living expense, fair rental value, civil authority prohibits use) -all are for indirect or consequential loss -limit of insurance appearing on declarations page for Coverage D is total limit payable for all 3 types of coverage provided. For example: a wildfire burns near the insured's home. If direct damage from the wildfire occurs to the residence premises, Additional Living Expense and Fair Rental Value coverages are triggered. If direct damage from wildfire occurs to the named insured's neighbors, and a civil authority evacuates the named insured, Civil Authority Prohibits Use coverage is triggered -Loss and expenses due to the cancellation of a lease or agreement are NOT covered.

Scheduled Personal Property Endorsement

-used to increase limits of liability for certain categories of personal property and to broaden the perils insured against that apply to that property. Coverage is provided on an open-perils basis and contains very few exclusions; including wear and tear, insects or vermin, war, and nuclear hazard. -Some additional exclusions and restrictions apply for fine arts, postage stamps, coins, and the breakage of art glass windows, glassware, statuary, marble, bric-a-brac, porcelains, and similar fragile articles. This endorsement is also referred to as a Personal Article Floater. -Newly acquired property of a class already insured on the endorsement is automatically covered. The insurer must be notified within 30 days (90 days for fine arts) if new property is acquired. Scheduled property is insured worldwide and the Section I deductible does not apply to this endorsement.

HO-8 (modified form)

-used to insure older homes when the replacement and market values of dwelling are disproportionate or if a moral hazard would be created if insurance were written at 100% replacement cost -ex: old 3 story Victorian home where insured lives on first 2 floors. If dwelling were destroyed in a loss, insured would not want to replace it exactly as it was before the loss. Instead of insuring the dwelling for its replacement value of 1.2 mil, the insured would insure it for a much lower amt of insurance -limit of insurance chosen should represent functional replacement value of dwelling, which is the cost to replace damaged property with property that will perform same function & efficiency even if it isnt of like kind/quality -HO-8 does NOT cover: falling objects, weight of ice/sleet/snow, accidental discharge of water/steam, freezing, sudden/accidental damage from artificially generated electrical current, accidental tearing apart/cracking/burning/bulging of HVAC

A related, full-time student away at school and under what age is considered an insured on the Homeowner policy?

24 -In order to qualify for coverage under the Homeowner policy, a full-time student living away at college is an insured if under age 24.

The automatic limit for Coverage D - Fair Rental Value is what percentage of Coverage A under an HO-3, Special Form?

30 -The automatic limit for Coverage D for the HO-2, HO-3, and HO-5 is 30% of Coverage A and 10% of Coverage A for the HO-8.

The amount of insurance provided for Coverage C is what percentage of Coverage A on a HO-3, Special Form?

50% -The Coverage C limit is 50% of Coverage A in the standard Homeowner policy, and may be increased.

Which of the following boats is covered under the Watercraft Liability endorsement?

A 20-foot sail boat -This endorsement covers sail boats with or without power, and property damage or bodily injury arising out of the ownership, maintenance, use, loading, or unloading of the described watercraft.

Section II Conditions: Legal Action Against Insurer

All parties must comply with policy provisions before any suit may be brought against the insurer. Also, no one has the right to enjoin the insurance company as a party to any action against an insured.

All of the following are covered by Coverage F - Medical Payments to Others, except:

An injury to the insured while mowing the lawn

Section II Conditions: Bankruptcy of an Insured

Bankruptcy or insolvency of an insured does not relieve the insurer of its obligations under the policy.

An owner of a condominium unit would purchase which Homeowner form? A HO-8, Modified Coverage Form

HO-6, Unit-owners Form -The HO-6 covers the personal property of the condominium unit owner as well as building coverage.

The duties required of an injured person seeking coverage under Medical Payments to Others include all of the following, except:

Help the insurer in settling the claim

Section II Conditions: Other Insurance

Insurance is excess over any other collectible insurance, except insurance written specifically as excess insurance over this policy.

Damage to Property of Others

Pays up to $1,000, at replacement cost, for property damage to property of others caused by an insured. Payment is made regardless of negligence. For example, damage caused by an insured to a borrowed lawn mower. Coverage does not apply to property damage: Covered under Section I of the policy. Caused intentionally by an insured who is 13 years of age or older. To any property owned by an insured. To property owned by or rented to a tenant of an insured or a resident of the named insured's household. Arising out of a business engaged in by an insured; acts or omissions in connection with premises owned, rented, or controlled by an insured that is not the insured location; the ownership, maintenance, occupancy, operation, use, loading or unloading of aircraft, hovercraft, watercraft, or motor vehicles.

In what way is the HO-5, Comprehensive Form, different from the HO-3, Special Form?

Personal property is insured on an open perils basis -The HO-5 Comprehensive Form covers personal property for open perils whereas the HO-3 policy covers it for named perils.

Other Exclusions

Power Failure (off premises) Neglect (failure to use reasonable means to protect/save property) War (civil or insurrection) Nuclear Hazard Intentional Loss Governmental Action (destruction, confiscation, or seizure of property)

Property not covered under Coverage C includes:

Property specifically described and insured elsewhere, such as on another policy or by endorsement to the homeowners policy Animals, birds, or fish Motor vehicles, including equipment, parts, and electronic equipment and accessories that can only be operated by the motor vehicle. An exception exists (meaning coverage is provided) for motor vehicles not required to be registered for use on public roads, used solely to service an insured's residence, or designed to assist the handicapped Aircraft, including its parts, except model or hobby aircraft is covered if it's not used or designed to carry people or cargo Hovercraft, including its parts Property of roomers, boarders, and other tenants—except those related to an insured Property in an apartment regularly rented, or held for rental, to others by an insured—except for property covered under the additional coverage, Landlord's Furnishings Property rented or held for rental to others off the residence premises Business data, credit cards, and electronic fund transfer cards—including data stored in books of account, on paper records, or on computers Water or steam -This insurance limit is 50% of the Coverage A limit of liability, does not reduce the Coverage A limit of liability, and may be increased by endorsement.

Loss Assessment (additional coverages)

Provides up to $1,000 of coverage for the insured's share of loss assessments charged by a corporation or association of property owners, during the policy period. The loss assessment must be the result of bodily injury or property damage not otherwise excluded by the policy or liability for an elected director, officer, or trustee who serves on the board of the association or corporation without being compensated.

Selected Homeowner Section II Endorsements Personal Injury Endorsement

The endorsement adds liability coverage for "personal injury,"

Section II Conditions: Concealment or Fraud

The policy does not provide coverage to an insured who, whether before or after a loss, has intentionally concealed or misrepresented any material fact or circumstance, engaged in fraudulent conduct, or made false statements relating to this insurance.

Section II Conditions: Policy Period

The policy only applies to bodily injury or property damage that occurs during the policy period.

Section II Conditions: DUties of an Injured Person - Coverage F- Medical Payments to Others

This condition applies to third party claimants who are pursuing coverage under the policy. The injured person, or someone acting on his or her behalf, must: Give the insurer written proof of the claim as soon as practical - and under oath, if required. Authorize the insurer to obtain copies of medical records and reports. Submit to a physical exam by a doctor of the insurer's choice when and as often as the insurer reasonably requires.

Section II Conditions: Payment of Claim - Coverage F - Medical Payments to Others

This condition states that payment under Coverage F is not an admission of liability.

Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement

This endorsement provides a basic property limit option of $10,000 on an annual aggregate basis during the policy period for: Loss caused by fungi, wet or dry rot, or bacteria. Cost of: Testing the air or property to confirm the existence of fungi, wet or dry rot, or bacteria. Removal of fungi, wet or dry rot, or bacteria. Tearing out and replacing any part of the building or other covered property to gain access to fungi, wet or dry rot, or bacteria. Insurers also can offer higher optional coverage limits of $25,000 and $50,000.

Identity Theft Expense

This endorsement will pay up to $15,000 for expenses resulting from an instance of identity fraud discovered during the policy period. The endorsement does not cover losses arising out of business activity. It carries a $500 deductible and the insured must notify the insurer within 60 days of the loss.

Which of the following is excluded under the Section II exclusions?

Vehicle used to assist the handicapped and parked in a public lot

Permitted Incidental Occupancies Endorsement

With respect to Section I, Coverage B (Other Structures), this endorsement covers a structure of the residence premises, specifically described, for direct physical loss by an insured peril for a specified limit of insurance when used to conduct a business. The endorsement also allows the Coverage C (Personal Property) special limit of $2,500 to apply to the described business.

Selected Homeowner Section II Endorsements Watercraft Liability Endorsement

amends the liability exclusion pertaining to certain types of watercraft liability. The exclusion is deleted and replaced with a revised exclusion, which states that Coverage E and F don't apply to "watercraft liability" if the involved watercraft is being: Operated in or practicing for any prearranged or organized race, speed contest, or competition. Sailing vessels and predicted log cruises are not excluded Rented to others Used to carry people or cargo for a charge Used for any "business" purpose If the watercraft is a sailing vessel or one powered by an inboard or inboard-outdrive engine or motor, Coverages E and F don't apply to bodily injury sustained by any employee in the course of employment. Such exclusion applies if the employee's principal duties are in connection with the maintenance, operation, or use of a watercraft designated in the endorsement.

Selected Homeowner Section II Endorsements Permitted Incidental Occupancies Endorsement

modifies the Section II exclusions of liability and medical payments in connection with business pursuits of the insured to allow the necessary and incidental use of the premises for the business described on the endorsement -The premises must be occupied principally as the insured's residence; the business must be conducted by an insured; and there can be no other business conducted on the premises. -commonly used for a studio, office, or private school type of occupancy. It does not cover bodily injury to any employee of the insured, except residence employees in the course of their employment.

Coverage A - Dwelling

policy covers: 1. Dwelling on the residence premises shown in the declaration, including structures attached to the dwelling. 2. Materials and supplies located on or next to the residence premises used to construct, alter, or repair the dwelling or other structures on the residence premises. For example, the pile of lumber in the insured's back yard that will be used to construct a deck off the kitchen. policy DOES NOT cover: Land on which the dwelling is located. 1. Theft in, to, or from a dwelling under construction, including materials used in the construction. 2. VMM including ensuing loss, if the dwelling was vacant for more than 60 consecutive days immediately before the loss. -When a limit of liability is chosen for Coverage A - Dwelling, the other three property coverages (B, C, and D) are automatically issued at limits equaling a specific percentage of the Coverage A limit of liability. If these limits are inadequate, the insured may purchase higher limits. -insurer requires the named insured to purchase insurance in an amount that is no less than 80% of the dwelling's replacement value. If, at the time of a loss, the amount of insurance on the dwelling is less than 80% of the dwelling's replacement value, a penalty will be applied to partial losses. If 80% Replacement cost is not carried, ACV will apply.