HO Policy QUIZ

The insured's home has a replacement cost of $150,000. In order to have replacement cost coverage for partial losses to the dwelling, their homeowners policy must be written with a face amount equal to or greater than

$120,000 co-insurance requires the insured carry 80% of the actual replacement cost to receive full replacement of a partial loss

The insureds have an HO-3 policy valued at $150,000. They have a detached garage that was destroyed by a covered peril. It will take $17,000 to replace the garage. Their homeowners policy will pay

$15,000 coverage B (other structures) is paid at the rate of 10% of Coverage A. in this case Coverage A (the dwelling) ws $150,000 so 10% of $150,000 equals $15,000

Sally has a homeowners policy (HO-3) with a value of $95,000. After cashing her payroll check, she decides to go to the store. Sally leaves $600 on the table at her home while she is shopping. She returns to find her home had been entered and her money is missing. Her HO-3 policy will reimburse her for

$200. money has a special dollar limit of $200

business property is covered under the HO policy for what amount?

$2500 on premises $1500 off premises

Suppose an injured party collects $1,000 under an insured's medical payments to others coverage and still sues the insured for pain and suffering. If the injured party is ultimately awarded $50,000, which includes the medical payments, what would the insured's liability pay?

$49.000 You cannot add medical payments pay to the liability limits.

What boat would be afforded liability coverage under a homeowners policy?

9 ft sailboat The homeowners policy has automatic liability coverage for certain vessels within certain parameters. A 30-foot speedboat, 35-foot sailboat, and 38-foot houseboat are all too big to be covered.

Joe has a homeowners policy covering his dwelling. If his home became unusable because of a covered peril, what coverage would Joe use to cover his additional living expenses?

Coverage D. provides things such as motels, transportation, food, etc. when home is unusable

What homeowners form provides broad form coverage for both the dwelling and personal property?

HO-2 form provides broad form coverage for both the dwelling and personal property. HO-3 provides special coverage (all Risk form) on buildings but provides broad form coverage for contents. HO-5 is an all-risk coverage form HO-8 provides basic coverage for both buildings and personal property

What homeowners policy is best described as "broad form peril coverage on both real and personal property?"

HO2 The HO-2 policy provides broad form coverage for both real and personal property. The HO-3 policy provides all risk coverage on the real property (buildings). The HO-4 provides personal property coverage only, while the HO-5 provides all risk coverage for both real and personal property.

What homeowners policy is best described as all risk coverage on real property and broad form perils on contents?

HO3 HO-3 policy provides "all risk" coverage on "real property," such as a dwelling or other structure. Moveable property is covered on a broad form basis.

The homeowners form that provides open peril coverage on the dwelling and broad coverage on personal property is the:

HO3 The HO-3 is open peril on the buildings and broad named perils on contents.

What homeowners policy provides all risk coverage to cover a detached garage?

HO3 The HO-3 provides all risk coverage for Part A (dwelling) and Part B (other structures). The HO-2, HO-4, and HO-6 provide named perils coverage for all coverage parts.

what homeowners policy is best described as coverage for contents only on a specified peril basis?

HO4

The insured wants to get the maximum protection for his home and personal property. He should purchase the

HO5 E The HO-5 is all risk coverage on the buildings and personal property. The HO-3 with the HO-15 (special personal property) coverage form makes the homeowners policy an "all risk" coverage. Without the HO-15 endorsement, the personal property is covered for named perils

Coverages A (dwelling) and B (other structures) of the HO-3 policy covers damage caused by

a wild animal coverages A and B of an HO3 policy does NOT cover damages caused by: -mechanical breakdownn -insects -domestic animal

What loss is included in all homeowners policies?

accidental and sudden discharge of water from a plumbing system Earthquake damage, flood damage, and area power failures are all exclusions under all homeowners policies.

There are no special limits under coverage C of the HO policy for

antiques Antiques should be listed and valued per item. However, if they are not, then they would have the same coverage C limit.

A hose on the washing machine in the insured's condominium comes loose and leaks water all over the floor. The repair person has to tear out part of the wall to fix the defective hose. The insured's HO-6 would cover:

both the water damage to the floor and cost to repair the wall The policy would pay for all of the water damage and the cost to repair the wall but not the cost to repair the hose.

what is NOT true of medical payments to others

covers medical expenses incurred within four years of an accident. this coverage will cover medical bills for as long as THREE years from the date of an accident, NOT four.

Which of the following is NOT used in determining the amount an insured can receive under the personal property replacement coverage endorsement to a homeowners policy?

depreciated market value The replacement cost endorsement eliminates depreciation in calculating the amount of the loss.

Which of the following situations would be covered under Coverage E, Personal Liability?

insured injures someone while operating a golf cart on the golf course

What would NOT be covered under all homeowners forms?

insureds car slides off her driveway and runs over her valuable rose garden, causing $200 in damages Coverage is excluded when damage is caused by a vehicle owned or operated by the resident.

mold is excluded on the All Risk coverage form unless

it results from a covered plumbing/water loss excluded unless it results from a covered accidental discharge of water from a plumbing device

Which of the following perils causing damage to property would be covered under the homeowners policy?

lava flow Earthquake, tsunami, and flood damage are all specifically excluded. Damage caused by lava flow would be covered under the peril for volcanic eruption.

The homeowners policy provides what coverage?

liability coverage dwelling coverage medical payments to others The homeowners policy provides coverage for both property and liability in one policy.

Which item should NOT be covered by a personal articles floater or scheduled personal property endorsement?

loose gem stones Loose gem stones are items a jeweler may have - not the average homeowner.

Special limitations of liability on property covered under a homeowners contract include

money, jewelry, and silverware.

Which of the following losses would NOT be recoverable under the liability coverage of the homeowners policy?

named insureds son damages the familys garage with his car The damage done to the family's garage with their own car would be covered under their auto insurance not homeowners insurance. The other three choices would all be recoverable under the liability coverage.

the insured's recently had a brand new detached garage built next to their home for $12,000. They have a HO-3 policy with $125,000 coverage on the dwelling, but they have never had a garage before. In order to have coverage on the garage, they should do what?

nothing, Coverage B automatically provides 10% of Coverage A for detached structures. under their HO-3 policy, they would be covered for the detached garage

what is NOT eligible for a HO policy

owner-occupant of a five-unit structure. the property CANNOT be more than a four-family dwelling to qualify for a HO policy. the following ARE eligible for an HO policy: -owner-occupant of a dwelling: -one co-owner of a two-family dwelling that is occupied by co-owners -intended owner-occupant of a dwelling under construction

All are excluded on an HO-8 ('91) EXCEPT

personal property away from premises Personal property coverage on the HO-8 is ACV, the same as it is on other HO coverage forms. The HO-8 is named peril on both structures and personal property. the following ARE excluded on an HO8: -flood and sewer backup -off premises power failure

what would be covered under a HO policy?

property in an apartment on the residence premises rented to others, valued at $2000 landlords furnishings in an apartment on the residence premises are covered up to $2500

What property is NOT included in coverage under Coverage C of the (2011) homeowners policy?

property in apt held for rental by the insured boarders property

Which of these statements about Coverage C, contents in the homeowners policy is correct?

property normally kept at a residence other than the residence premises is covered for 10% of coverage C limit or $1000, whichever is greater Coverage C, contents are covered anywhere in the world and while it is being moved from one principal residence to another. There is no coverage for the property of a roomer or a border.

What does NOT have a special limit under Coverage C?

property you take on a trip to myrtyle beach Jewelry, watches, furs, precious and semi-precious stones, silverware, gold ware, or pewter ware, and firearms all have dollar limits and require that the loss be from theft. Personal property of the insured is covered worldwide.

What property is included in coverage under Coverage C of the (2011) homeowners policy?

property your daughter has with her at college

The personal articles floater is similar in coverage to which of the following endorsements to the HO policy?

scheduled personal property endorsement The Personal articles floater is a separate policy and is similar to Scheduled personal property endorsement on the homeowners.

Under a homeowners policy, the insured location includes all of the following, except:

secondary location used by the insured for a business insured location under a HO policy INCLUDES the following: -motel where insured is temporarily residing -cemetary plot -vacant land on which the insured plans to build a house

What would be eligible for the homeowners policy?

single family home occuped by owner and one boarder To be eligible for the homeowners policy, the building must be owner-occupied; only incidental businesses are allowed. The farm must be covered under a farm policy.

what is included on the HO policy

stereos the following ARE excluded -pets -motorcycles -cars

What is another name for the HO-4?

tenants form HO-4 provides contents coverage for insureds who do not own the premises they inhabit. It contains no structures coverage, but still includes contents (personal property), loss of use, personal liability, and medical payments.

A homeowners policy provides property and liability coverage under one package. What is covered by such a contract?

theft of jewelry Although limited to $1,500, theft of jewelry is covered under a homeowners policy.

what WOULD be covered under all homeowners forms?

tornado shatters the glass of the insureds windows and storm doors someone steals insureds checkbook and writes fradulent checks on insureds acct reasonable repairs to protect property from further damage

what property could be insured under Coverage C?

your old art collection

What would NOT be excluded from Section II of your homeowners policy?

your pet doberman bites the mailman . the following WOULD be excluded from Section II of your HO policy -BI to any person covered under workers compensation -professional liability -business pursuits