Homeowners Policy Quiz

the dwelling insured on the Ho2, ho3, or ho5 form is covered for replacement, provided that it is insured for at least what percentage of replacement cost on the date of loss? a. 25% b. 40% c. 75% d. 80%

D. 80%. HO2, three, and five provide replacement cost coverage if the house is insured for at least 80% of its value on the date of the loss

which of the following would not be considered part of the insured location under the liability section of a homeowner's policy? a. a residence where an insured is temporarily residing b. a family cemetery plot c. a lakeside cabin rented by the insured for a vacation D. vacant farmland owned by the insured

D. Bacon farmland owned by the insured. farm properties pacifically is excluded from coverage

the contents coverage on a homeowner's policy would pay how much after the loss of one of a pair of golden candlesticks? a. The replacement cost of the pair b. The actual cash value of the pair c. nothing D. The difference in the actual cash value as a pair and as a single

D. The difference in the actual cash value as a pair and as a single. according to the pair or set clause, the insurer may elect to restore the set to its value before the loss, or pay the difference between the actual cash value of the property before and after the loss.

an optional coverage endorsement to the homeowners policy that covers schedule residential structures on the insurance premises that are rented to others is called a. other structures - increase limits b. modified residence provision c. residential endorsements D. additional residence rental provision

D. additional residence rental provision. The additional residence rental provision is an optional coverage endorsement do the homeowners policy that covers scheduled residential structures on the insured's premises that are rented to others. it modifies a lot ability exclusions to extend liability coverage to the rented residence

a common extension of property insurance coverage that goes beyond the coverage for fire and lightning is known as a. vandalism and malicious mischief coverage b. basic coverage c. seasonal increases D. extended coverage

D. extended coverage. a common extension of property insurance coverage that goes beyond the coverage for fire and lightning is called extended coverage. this coverage extends insurance against losses by puro such as wind storm, hail, riots and strike-related civil unrest, aircraft damage, vehicle damage, and smoke damage. in the past, EC was written as an endorsement, but in recent years has been added to many forms as either optional coverage or is part of the minimum coverage provided by the policy

an insured has a personal property replacement cost endorsement under her homeowners policy. if an expensive painting and an antique chair or stolen from the insurance home, what will the insured receive on the claim under that endorsement? a. 70% of the replacement cost b. 80% of the replacement cost c. 100% of the actual cash value D. nothing

D. nothing. The personal property replacement cost endorsement exclusive property such as art and antiques

which of the following endorsements is used to ensure coverage c (personal property) for values beyond the limitations of the homeowners policy? a. personal property replacement cost b. blue skies endorsement c. personal property injury endorsement D. scheduled personal property endorsement

D. scheduled personal property endorsement. items that are scheduled and insured under the a scheduled personal property endorsement are covered on a valued basis

in apartment occupants personal property would be insured under which homeowners form? a. comprehensive form (HO5) b. broad form (HO2) c. unit - owners forum (ho - 6) D. Tennant broadform (ho - 4)

D. tenant broad form (HO4). the HO4 (tenant broad form) is for the apartment dweller. it covers what the insured owns, their contents, and has no coverage for the apartment.

what is the maximum number of borders per unit that would be allowed in the homeowners policy? a. 2 b. 3 c. 4 d. 5

a. 2. homeowners policies May ensure a property that has no more than two families are two roomers were borders per unit

under the HO-4 and HO-6 homeowners policy forms, property is insured against a. broad forms perils b. basic form perils c. special forms perils or d. comprehensive form perils

a. broad form perils. HO-4 and HO-6 provide the same level of coverage as Coverage C in the HO-2 and HO-3

the difference in the contents coverage on an ho-3 and ho-4 5 is which of the following? a. contents are covered open peril on ho - 5, and named peril on ho-3. b. contents are covered open peril ho - 3, and named peril on HO5. c. contents are covered for replacement cost on ho - 5, and ACV on ho-3 D. contents are covered for replacement cost on ho-3 and ACV on ho5

a. contents are covered open peril on HO - 5, and named peril on ho - 3. HO-5 provides open peril coverage for contents; ho - 3 is named peril coverage for contents. replacement cost coverage is available only by endorsement to either form

because an insured owns a lot of expensive jewelry, her insurance agent has advised her to purchase a scheduled personal property endorsement. if the insured ads this endorsement to her homeowners policy, which of the following statements would be correct? a. covered sea limits will no longer apply to the jewelry insured by the endorsement b. The amount of coverage will be doubled c. The endorsement becomes excess coverage D. The endorsement because primary coverage in the ho contract is secondary

a. covered C limits will no longer apply to the jewelry insured by the endorsement. when items aren't scheduled, they are excluded from coverage see as insured items, and recovered only under the scheduled personal property endorsement

which policy condition in the ho policies states that the insurance applies separately to each insured? a. severability of insurance b. appraisal c. limit of liability D. payment of claim

a. severability of insurance. severability of insurance means that the insurance applies separately to each insured this condition does not increase the insurance liability for any one occurrence.

the insured's home is covered by an ho-3. two years ago, the insured bought the home for $58,000. today, its replacement value is $60,000. how much coverage a does the insured need to qualify for replacement cost coverage? a. $46,400 b. $48,000 c. $58,000 d. $60,000

b. $48,000. a house must be insured for at least 80% of its value on the date of loss to qualify for replacement coverage. in this example 80% of $60,000 is $48,000

all of the following people would be considered insured under the liability section of a homeowner's policy except a. The legal representative of a deceased insured b. The 22 year old niece of the insured who is visiting c. a 15 year old foster child residing in the premises D. The mother of the insured who is residing in the household to be

b. The 22 year old niece of the insured who is visiting. relatives of the insured of any age are considered insurance only if they are residents of the household

losses that result from the freezing of a plumbing system while the dwelling is vacant would be excluded under a homeowner's policy unless a. The insured purchased the water damage endorsement b. The insured had drained the plumbing the system c. The insured purchased special form coverage D. The dwelling had been vacant for no longer than 90 days

b. The insured had drain the plumbing system. The insured would need to have made reasonable efforts to maintain heat in the insured building or have drain the plumbing system

the ho-3 homeowners policy provides a. all - Chris coverage for both the dwelling and personal property b. open peril coverage on the dwelling and broad form coverage on personal property c. open peril coverage on the dwelling in basic form coverage on personal property D. basic coverage for the dwelling and broad form coverage for personal property

b. open peril coverage on the dwelling and broad form coverage on personal property. The open peril coverage applies to property insured under coverages a&b only

Limited fungi, wet or dry rot, or bacteria endorsement in HO policies applies to a. liability losses only b. property and liability losses c. specified losses d. property losses only

b. property and liability losses. Limited fungi, wet or dry rot or bacteria coverage is an endorsement that may be used to add special limits for losses caused by fungi, dry or wet rot, and bacteria. This endorsement applies to both property and liability losses

a home is insured under an HO2 policy. the homeowner decides to replace the roof on the house. he wasn't able to complete the roof in one day and left a portion of it unfinished overnight. a heavy rainstorm caused $20,000 of damage to the interior of the house and some furniture. in this situation the policy will pay a. 80% of the replacement cost b. nothing c. The ACV of the damage D. replacement cost of the damage

be. nothing. HO2 is a named peril policy in rain is a not covered peril. it would pay for the damage caused by the rain, if the hole was caused by a covered peril (wind or hail)

the mobile home endorsement alters the homeowners policy to cover a mobile home and other structures on land a. Leased by the owner of the land b. owned or leased by the resident of the mobilehome c. own or lease by a landlord who does not reside on the premises D. owned by a landlord who does not use the mobile home located on it

be. owned or leased by the resident of the mobile home. The mobile home endorsement alters the homeowners policy to cover a mobile home and other structures on a land owned or leased by the resident of the mobile home

The insured with a homeowners policy has had damage to his property caused by a volcano. Which of the following is true? a. all eruptions are considered separate occurrences no matter how close together b. coverage for each volcanic eruption would require a separate deductible c. all volcanic eruptions w/in a 72-hour period will be considered one occurrence d. none of the damage is covered

c. all volcanic eruptions w/in a 72-hour period will be considered one occurrence

which one of the following statements regarding coverage for the flood and earthquake perils is true? a. what an earthquake coverage is available only through the government b. flood insurance is usually provided in property policies; earthquake insurance, however, is available by endorsement only. c. both are excluded perils in all property policies D. flood and earthquake coverage is available in all policies

c. both are excluded perils and all property policies. flood and earthquake are both excluded perils in all property policy; however, coverage for both or either one can usually be purchased separately for an additional premium (by endorsement).

which of the following examples of losses paid under ho-3 also would be paid under a HO-2 to homeowners policy? a. accidental scorching caused when a hot iron is placed upon a built-in countertop b. interior damage caused by water seeping under the shingles on the roof c. damage to the dwelling caused by ash or dust from a volcanic eruption d. damage to the dwelling caused by the insured when moving furniture

c. damage to the dwelling caused by a short dress from a volcanic eruption. an ho-3 covers losses on an open peril basis. in HO2 covers losses on named peril basis. both forms cover damage to the dwelling caused by ash or dust from a volcanic eruption

which of the following losses would be covered by an unendorsed homeowners policy? a. theft in a structure under construction b. collapse caused by an earthquake c. fire or lightning d. faulty or defective zoning

c. fire or lightning. fire and lightning are included in the basic perils, which in turn are included in almost all homeowners policies. earthquake coverage is only by endorsement. theft in or two buildings under construction is not covered. if the insured's own acts, decisions, or failure to act causes the loss, it is not covered

elaborate homes in those with detailed designs are decorative architecture with replacement cost greater than a CV or market value are insured on a. h 03 b. ho-3 with an ho15 endorsement c. h 08 d. h 08 with an inflation guard endorsement

c. h 08. HOA is used to ensure houses with replacement cost more than market value and those built with irreplaceable materials. it is modified ho1 and provides ACV coverage for coverage a

which of the following homeowners forms is designed to provide named peril coverage for personal property to individuals who rent an apartment? a. h o - 2 b. ho-3 c. h o - 4 d. h o - 6

c. ho4. in ho4 does not provide insurance under coverage is a&b because the insured does not have an insurable interest in the structure

which of the following homeowners policies covers those who rent their dwelling? a. ho1 b. HO2 c. ho4 d. ho6

c. ho4. the personal property of a tenant is covered by the ho-4 policy

which of the following homeowners forms is designed for individuals that own and reside in a condominium? a. ho-3 b. ho-4 c. ho-6 d. ho-2

c. ho6. ho6 is designed specifically to cover the exposure of a condominium

following the holiday season, and insured decides to store his decorations in the attic for the summer. while moving the decorations, he accidentally dropped a heavy box of crashes through the ceiling and damages a table and lamp in the dining room causing $1,000 of damage to them. his h o 0 0 0 3 will pay a. $1,000 less the deductible b. The market value of the damaged property c. nothing D. $1,000

c. nothing. The peril "falling objects" does not include lost a property contained in a building unless the roof or an outside wall of the building is first damaged by a falling object. damage of the falling object is not included.

According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss?

either party may make a written request for an appraisal

which of the following types of property would be covered in any of the homeowners coverage forms? a. structures rented to others who are not tenants of the dwelling, other than a garage b. animals, birds or fish see. landlord furnishings in an on-premises apartment D. structures used for business purposes

see. landlord furnishings in an on-premises apartment. landlord furnishings and an - premises apartments are covered for up to $2,500

several insureds have become liable because of a single loss. how will the policies limit of liability be affected? a. a homeowners policy can have no more than one insured b. The full limit applies to each insured individually see. no more than the per occurrence limit applies, no matter how many insureds are involved D. pro rata liability applies

see. no more than the per occurrence when it applies, no matter how many insureds are involved. The insurance apply separately to each insured. this condition does not increase the insurer's liability for any one occurrence.

the ho-3 homeowners policy provides a. basic coverage for the dwelling and broad form coverage for personal b. all desk risk coverage for both the dwelling and personal property c. open peril coverage on the dwelling and broad form coverage on personal property. D. open peril coverage on the dwelling and basic form coverage on personal property

see. open peril coverage on the dwelling and broad form coverage on personal property. The open peril coverage applies to property insured under coverage is a and b only

in apartment occupants personal property would be insured under which homeowners form?

tenant broad form ho - 4. pho - form or tenant broad form is for the apartment dweller. it covers what the insured bones, their contents, and has no coverage for the apartment.