Homeowners Policy

An insured has a homeowners broad form with a $200,000 limit on the dwelling and the standard deductible. If the insured's $2,500 boat and trailer are stolen from his driveway, what is the most the insured will collect from the policy?

$1,250 The limit for watercraft including trailers is $1,500. The policy will pay the limit less the standard deductible of $250.

Under the unendorsed Homeowners Policy, jewelry is covered up to what amount?

$1,500 for loss by theft Jewelry, watches, furs, precious and semiprecious stones are covered up to $1,500 for loss by theft. Other named peril losses are covered up to the Coverage C limit.

Limit of loss of theft of jewlery and furs under Coverage C

$1500

Money is covered up to _______$ per occurence

$200

Policyholder S has an HO-5 policy with a $250,000 Coverage A limit. After a strong wind blows a mailbox into S's front picture 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?

$2750

How much is fire departments service charge under HO policy?

$500

Under a Homeowners Policy, how much coverage is provided for theft or unauthorized use of a credit card?

$500

L owns a home covered under an HO-3 for $200,000. Under Coverage D, how much coverage does L have for lost income if his basement apartment becomes uninhabitable due to a fire loss?

$60,000 For a covered loss, the Coverage D limit for additional living expense, fair rental value, and civil authority prohibited use is 30% of Coverage A.

Property usually located in a student dormitory is limited to __% of Coverage C or $1,000, whichever is greater

10%

Which boat can be added to the Homeowners Policy for liability protection?

20' sailing boat

Residential dwellings with no more than _____ residential units and _____ roomers or boarders per family are eligible under a Homeowners Policy.

4 residential units and 2 roomers or boarders

The amount of insurance provided to cover personal property under Coverage C of a Homeowners Policy, is:

50% of Coverage A The basic amount of Coverage C insurance is 50% of the Coverage A Limit. This amount can be increased by payment of an additional premium.

included in the definition of 'insured location', except:

A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds

What coverages are under Section I

A,B,C,D

Under the HO-8 policy, the dwelling is valued on which basis?

Actual Cash Value

Which property would be settled for its actual cash value even if the Personal Property Replacement Cost Loss Settlement Endorsement is attached to the HO-3 policy?

Antiques

Under the HO-4 and HO-6, personal property is covered on which basis?

Broad perils coverage

Coverage A

Dwelling

What coverages are under Section II

E,F

T/F Coverage D of a Homeowners Policy includes loss of income from an incidental business

False

T/F Coverage C extends to animals, birds, or fish owned by the insured

False: There is no coverage for pets under an unendorsed Homeowners Policy.

Named perils for Broad Form (HO-2)

Fire or lightning Windstorm or hail Explosion Riot or civil commotion Aircraft Vehicles Smoke Volcanic eruption Vandalism or malicious mischief Theft (limited) Falling objects Weight of ice, snow, or sleet Accidental discharge or overflow of water or steam Sudden and accidental tearing apart, cracking, burning, or bulging of heating or air conditioning systems (HVAC) Freezing Sudden and accidental damage from artificially generated electrical current

The HO-8 form settles losses to the building on what valuation method?

Functional Replacement Value

New home buyer S called his agent and told him that he wanted the broadest coverage available for his new home. Which policy would the agent be most likely to recommend?

HO-5 The HO-5 Comprehensive Form provides the broadest coverage of any of the homeowners forms as the dwelling, other structures, and personal property are all covered on an open perils basis.

Under an HO-3 policy, what is the coinsurance requirement?

If Coverage A is less than 80% at the time of a loss to the dwelling, a penalty will be applied to the partial dwelling loss claim payment.

Section II is

Liability coverage

Coverage D

Loss of Use 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

Coverage F

Medical Payments to Others

Is coverage provided for windstorm or hail loss on HO-3 policy?

No

An HO-3 policy provides coverage on which basis?

Open perils coverage on the dwelling and broad form coverage on the personal property

Coverage B

Other Structures

Which type of liability limit applies to Medical Payments coverage?

Per person Medical payments coverage for all types of policies pays on a 'per person' limit.

Which of the coverages is not included in a standard Homeowners policy?

Personal Injury liability

Coverage C

Personal Property coverage is limited to 10% of Coverage C or $1,000, whichever is greater

An employee, whose duties are related to the maintenance of the residence premises, is defined as what under Section II of the Homeowners Policy?

Residence Employee

Which of the following statements is false concerning Section II of a Homeowners Policy?

Section II provides no defense in the event of a groundless, false, or fraudulent claim

HO Section II losses are subject to a deductible of how much?

There is no deductible for Section II losses

Modified Form (HO-8)

Used when insuring older homes where replacement value and market value are disproportionate or when a moral hazard would be created if insurance were written in an amount equal to 100% of a dwelling's replacement value.

Vandalism and malicious mischief losses are excluded under the Homeowners Policy:

When the property has been vacant for 65 consecutive days

In what way is the HO-5, Comprehensive Form, different from the HO-3, Special Form? a. Personal property is valued at actual cash value b. Personal property is insured on an open perils basis c. The dwelling is valued at replacement cost d. The dwelling is insured on an open perils basis

b. Personal property is insured on an open perils basis

The automatic limit for Coverage D - Fair Rental Value is what percentage of Coverage A under an HO-3, Special Form? a. 10 b. 20 c. 30 d. 50

c. 30

Coverage A - Dwelling does not cover vandalism and malicious mischief if the dwelling has been vacant for how many days? a. 20 b. 30 c. 60 d. 90

c. 60

An owner of a condominium unit would purchase which Homeowner form? a. HO-2, Broad Form b. HO-4, Contents Broad Form c. HO-6, Unit-owners Form d. HO-8, Modified Coverage Form

c. HO-6, Unit-owners form

All of the following special limits of Coverage C are correct, except: a. $200 for money b. $2,500 for theft of firearms c. $1,500 for a trailer not used with watercraft d. $2,500 for business property away from premises

d. $2,500 for business property away from premises

A related, full-time student away at school and under what age is considered an insured on the Homeowner policy? a. 18 b. 19 c. 20 d. 24

d. 24

The amount of insurance provided for Coverage C is what percentage of Coverage A on a HO-3, Special Form? a. 15% b. 25% c. 35% d. 50%

d. 50%

Section II coverages are not subject to a

deductible

Unit-Owners Form (HO-6)

named perils coverage to the owner of a condominium or cooperative unit under Coverage A - Dwelling and Coverage C - Personal Property

Coverage E

personal liability

Section I is

property coverage

Broad Form (HO-2)

provides named perils coverage for the dwelling (Coverage A), other structures (Coverage B), and personal property (Coverage C).

HO-5 Comprehensive Form

provides open perils coverage ("all-risks coverage") on the dwelling, other structures and personal property.

HO-4 (contents broad form)

renter's or tenant homeowners policy. It doesn't provide any coverage for the dwelling or other structures because it's designed to insure those who are tenants.

HO-3 (special form)

the dwelling and others structures (Coverages A and B) are insured on an open perils basis

What is the deductible for scheduled personal property endorsement?

there is no deductible