Homeowner policy
How much is the Theft peril limit coverage under the HO-8 cover for any one loss?
$1,000
How much the policy will pay for grave markers?
$5,000
What are the requirements for a dwellings insured by a homeowner policy?
1 to 4 residential units. No more than 2 roomers or boarders per family. Primary residence, incidental business occupancies are allowed.
What are the Additional Coverages under section I who applies to all homeowners forms?
1- Debris removal, 2- Reasonable repairs, 3- Trees, shrubs, and Other plants, 4- Fire department service charge, 5- Property removed, 6- Credit Cards, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money, 7- Loss Assessment, 8- Glass or safety glazing material, 9- Collapse, 10- Ordinance or law, 11- Grave Markers.
What is the coverage B limit insurance?
10% of the coverage A limit.
For what time the insurer provides coverage for a civil authority prohibit use?
2 weeks.
What is the coverage C limit insurance?
50% of the coverage A limit of liability.
The HO-2 protects against all of the following losses, except: A Rain damage to the interior after a window was left open during a storm B Theft of jewelry C Fire loss to a tool shed that stored gasoline in gas cans for the insured's personal use of a lawn mower D Smoke damage to a fence after a house fire
A Rain damage to the interior after a window was left open during a storm
In what basis are settle the losses under coverage C under broad form (HO-2)?
Actual cash value (ACV)
What are the three types of loss of use that coverage D provides?
Additional living expenses, fair rental value, and civil authority prohibits use.
What is the territory covered by coverage C?
Anywhere in the world
At what valued basis covers the HO-2, HO-3, HO-5 and HO-6 the losses personal porperty?
At its actual cash value.
At what valued basis covers the HO-2, HO-3, HO-5 and HO-6 the losses to the dwelling and other structures?
At their replacement cost.
Under an HO-3 policy, what is the coinsurance requirement?
B 80%
An insured is part of a homeowners association. After a property loss to a common area owned by all of the association's members, the insured is assessed $1,500 for the damages. The insured's Homeowners policy will provide: A $1,500 of coverage B $500 of coverage C $1,000 of coverage D No coverage
C $1,000 of coverage
All of the following definitions apply to a Homeowners policy, except: A Bodily injury is bodily harm, sickness, or disease, including required care, loss of services, and death that results B A residence employee is an employee of an insured whose duties are related to the maintenance or use of the residence premises C Property damage is physical injury to tangible property, but does not include loss of use of that property D An occurrence is an accident, including exposure to conditions that result during the policy period in bodily injury or property damage
C Property damage is physical injury to tangible property, but does not include loss of use of that property
The Broad Form perils named on the HO-2 include all of the following causes of loss, except: A Theft B Vandalism and malicious mischief C Collapse D Windstorm or hail
C Collapse
Provides the broadest coverage of any of the homeowners and coverage A, B, and C provide insurance on an open perils basis:
Comprehensive Form (HO-5)
Coverage is not provided for real property, like the dwelling or other structures, as the insured is only a tenant of the dwelling and is not responsible for insuring the structure itself:
Contents Broad Form (HO-4)
What homeowner form is also called tenant's form?
Contents Broad Form (HO-4)
On a Special Form Homeowners policy, the dwelling and other structures are insured against which perils? A Broad perils B Named perils C Basic perils D Open perils
D Open perils
What provides coverage A in a Homeowner policy?
Dwelling, including structures attached to the dwelling.
For what is designed the HO-4?
For tenants of residential units, such as dwelling or apartment units, and coverage is focused on the tenant's personal property.
For what is designed the HO-6?
For the owners and tenants of condominium or cooperative units, and coverage is focused on personal property and the portion of the building the named insured either owns or is responsible for insuring.
What structures are excluded on coverage B?
Land, Other structures rented or held for rental. Other structures used to store business owned by other than an insured or tenant of the dwelling.
What provides coverage D in a Homeowner policy?
Loss of use
What provides coverage F in a Homeowner policy?
Medical payments to others, without needing to first establish negligence.
Is used to insure older homes that do not meet the underwriting requirements applicable to the other Homeowners forms and whose replacement value may be disproportionately higher than its market value.
Modified Form (HO-8)
What is an excluded peril on all Homeowner forms?
Off-premises power failure
On a Contents Broad Form (HO-4) how are the losses settled?
On an Actual Cash Value basis
What provides coverage B in a Homeowner policy?
Other structures on the residence premises.
What provides coverage C in a Homeowner policy?
Personal property owned by the insured
In what basis are settle the losses under coverage A and B under broad form (HO-2)?
Replacement cost
Covers personal property on a named perils basis:
Special Form (H-03)
The dwelling and other structures are insured on an open perils basis, covering all direct loss except for any excluded causes of loss.
Special Form (H-03)
What homeowners forms doesn't require the named insured to be the owner-occupant of the insured dwelling?
The Contents Broad Form (HO-4) and the Unit-Owners Form (HO-6).
What homeowners forms valued losses to the dwelling and other structures at their replacement cost, and losses to personal property at its actual cash value.
The HO-2, HO-3, HO-5 and HO-6.
Under a Homeowners policy, medical payments coverage will apply to medical expenses incurred after an accident within how many years?
Three years
Is designed for the owners of a condominium and cooperative units:
Unit-Owners Form (HO-6)
What is the excluded peril to a covered tree?
Windstorm and hail losses
What are the exclusions on the coverage F medical payments?
roommates, tenants, boarders, and other regular residents of the household
Under an HO-3 policy, what is the coinsurance requirement?
80%
S has an HO-5 policy with a $250,000 Coverage A limit. After a strong wind blows a mailbox into S's front window, causing $2,500 damage, S immediately buys $250 of wood and plastic sheeting to cover the damaged window and prevent further damage. How much will S's policy pay? A $2,750 B $1,500 C $250 D $500
A $2,750
Coverage D on a Broad Form Homeowners policy would provide all of the following coverages, except: A Loss of income when the insured cannot continue an incidental business after a fire loss B Payment of a structure's fair rental value when a fire loss makes it unfit to live in C Additional living expenses incurred by the insured while a dwelling damaged by a fire is repaired D Expenses incurred when a civil authority keeps the insured from staying in the residence because of a fire loss to a neighboring premises
A Loss of income when the insured cannot continue an incidental business after a fire loss
All of the following are defined as insured locations under a Homeowners policy, except: A Farmland owned by the insured B Boat slip C A non-owned premises where the insured is temporarily residing D Cemetery plots
A Farmland owned by the insured
All of the following would be included in the definition of insured location, except: A Land upon which a 4-family dwelling is being built as a residence for the named insured B A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds C A boat slip used by the named insured D A summer vacation home rented by the insured
B A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds
Medical payments under Coverage F of a Homeowners policy may be provided to all of the following people, without needing to establish negligence, except: A A residence employee B A boarder C A guest D A family friend
B A boarder
Which of the following is true regarding an unendorsed HO-4? A It provides open perils coverage on an actual cash value basis B It provides named perils coverage on an actual cash value basis C It provides open perils coverage on a replacement cost basis D It provides named perils coverage on a replacement cost basis
B It provides named perils coverage on an actual cash value basis
Which of the following would NOT be considered part of the residence premises on a Homeowners policy? A A 3-family dwelling where the named insured resides B Premises rented occasionally to the named insured for personal use C A 1-family residence where the named insured resides D Other structures on the grounds on which the insured dwelling sits
B Premises rented occasionally to the named insured for personal use
A Broad Form Homeowners policy (HO-2) is used to insure Q's two-story home located on a three-acre lot. The home is insured for $350,000. One day during a bad storm, hail damages the home's roof and damages a large tree in Q's backyard. What is the limit of insurance available under the HO-2 policy for this loss to the tree? A $1,000 B $0 C $500 D $250
B $0
Under a Homeowners policy, an unrelated resident in the care of the named insured is also considered an insured up to what age? A 16 B 21 C 24 D 18
B 21
A tenant should buy which of the following Homeowner policy forms? HO-2 B HO-4 C HO-8 D HO-5
B HO-4
A dwelling insured on an HO-3 policy suffers a partial fire loss. Before actual repair or replacement is complete, the insurer will pay up to: A The actual cash value of the entire dwelling B The actual cash value of the damaged portion of the dwelling C The functional replacement cost of the damaged portion of the dwelling D The replacement cost of the damaged portion of the dwelling
B The actual cash value of the damaged portion of the dwelling
What provides coverage E in a Homeowner policy?
Bodily injury and property damage liability
Section II of a Homeowners policy may cover which of the following incidents?
Bodily injury to a stranger, caused by an insured's activities while picnicking at a city park.
Provides named perils coverage for the dwelling (Coverage A), other structures (Coverage B), and personal property (Coverage C).
Broad Form (HO-2)
Under Section II of a Homeowners policy, which of the following is correct?? A Section II on the HO-3 (Special Form) has broader coverage than Section II on the HO-2 (Broad Form) B Section II on the HO-6 is modified to adapt to the exposures of the condominium unit-owner C Section II is the same on all Homeowners Forms D Section II on the HO-4 (Tenant's Form) is modified to adapt to the tenant's exposures
C Section II is the same on all Homeowners Forms
K has a Homeowners policy with a $100,000 Coverage E limit and a $1,000 Coverage F limit. A guest falls in K's house, and their injuries result in $1,500 of medical expenses incurred over three months. How much will K's policy pay? a $1,500 B Nothing until K's negligence is legally established C $1,000 D $500
C $1,000
Which of the following coverages is not included in a standard Homeowners policy? A Property damage liability B Medical payments C Personal injury liability D Bodily injury liability
C Personal injury liability
Section II of a Homeowners policy may cover which of the following incidents? A The homeowner's family dog bites their 2-year-old son B The insured hits and injures a swimmer while enjoying a ride in an owned inboard motorboat C An insured's guest damages the stair railing during a visit D Bodily injury to a stranger, caused by an insured's activities while picnicking at a city park
D Bodily injury to a stranger, caused by an insured's activities while picnicking at a city park
N buys a new home and maintains their first home as a rental property. The new home is insured on an unendorsed Special Form Homeowners policy for $250,000 with an 80% insurance to value requirement. The Special Form will provide all of the following coverages, except: A Coverage for N's personal property in the home on a named perils basis B Coverage for a detached garage on an open perils basis C Coverage for additional living expenses incurred when a covered loss makes the home unfit to live in D Coverage for the home on a named perils basis
D Coverage for the home on a named perils basis
An HO-3 policy will pay how much for a tree damaged in a windstorm? A $500 B $250 C $1,000 D $0
D $0
Personal property is protected on the HO-3 against loss by all of the following perils, except: A Explosion inside the dwelling B Powre surge caused by lightning striking the residence premises C Water overflowing from an air conditioning system D Off-premises power failure
D Off-premises power failure
The Ordinance or Law Additional Coverage on a Homeowners policy will cover an increase in costs that results from the enforcement of an ordinance or law regulating all of the following, except: A Remodeling or renovation of an insured building B Construction or demolition of an insured building C Repair of an insured building D Pollutant testing and removal from an insured premises
D Pollutant testing and removal from an insured premises
An insured with a Broad Form Homeowners policy suffers a fire loss that damages the dwelling and personal property. The loss to the dwelling is valued at its: A Salvage value B Market value C Actual cash value D Replacement cost
D Replacement cost
Under what coverage are covered Additional living expenses by all Homeowners forms?
Under coverage D