Property License

Discharge water/steam overflow from off premises Fire Explosion Theft

When is water damaged covered under an HO Policy? (3)

Section 2

Where are the liability coverages listed in an HO Form?

Section 1

Where are the perils listed in an HO Policy?

On or next to premises

Where do construction materials used to repair property have to be located to be covered as 'dwelling'?

Anywhere in the world

Where does Coverage C (Personal Property) apply to, geographically?

HO 6 Unit Owners Form

Which HO Form is designed for owners of condos & cooperative apartments?

HO 8 Form (Modified)

Which HO Form is designed to insure older homes when the RC of a house may substantially exceed its market value?

HO 4 Contents Broad Form

Which HO Form is primarily designed for tenants of houses or apartments?

HO-5 Comprehensive Form; major coverages are 'open' perils

Which HO Form provides the most expansive coverage & why?

HO 3 Special Form

Which HO form is the most popular?

(b) It combines two or more separate coverages in a single policy.

Why is a home-owners insurance policy considered a package policy? (a) It is usually delivered by a parcel service. (b) It combines two or more separate coverages in a single policy. (c) It comes in a policy binder. (d) It is associated with home ownership.

$200

What is the sub-limit for money/related items?

$1,500

What is the sub-limit for portable electronic equipment that can be powered by a motor vehicle?

$1,500

What is the sub-limit for securities/accounts/deeds, & related items?

$500

What is the sub-limit for stolen credit cards?

Gazebo Detached Garage/Toolshed Driveway Swimming Pool Fence

What are some examples of 'other structures' covered in an HO Policy?

Garage Toolshed Construction materials to repair home

What are some examples of 'structures attached to dwelling'?

• An individual on the insured location with the permission of an insured; or • An individual off the insured location, if the bodily injury (1) Arises out of a condition on the insured location or adjoining locale; (2) Is caused by an insured's activities; (3) Is caused by a residence employee in the course of his or her employment by an insured; or (4) Is caused by an animal that is owned by an insured or in an insured's custody.

Covered persons under liability coverage of an HO Form include:

Replacement Cost

Do HO Forms provide coverage for buildings on an ACV or RC basis?

Yes

Does Coverage C apply to property outside of the house (patio furniture, lawn mower)?

Yes

Does an insurer provide coverage for building collapse?

No - more of a moral obligation (goodwill)

Does the insured have to be legally liable in order to utilize the 'Medical Payments' coverage under their HO?

$2,500

What is the sub-limit for loss by theft of firearms & related items?

• Motor vehicle liability • Watercraft liability • Aircraft liability • Hovercraft liability • Expected or intended injury • Businesses • Professional services • Insured's premises not an "insured location" • War • Communicable disease • Sexual molestation, corporal punishment, or physical or mental abuse • Controlled substances

12 Exclusions (liability & med pay):

Broadened coverage applies automatically to all policies with a premium charge

A Liberalization Clause serves what purpose?

(b) Will cover only the expense of removing smashed pieces of eddy's house.

A runaway truck plowed into Eddy's house. Before the damage could be repaired, the smashed truck and smashed pieces of the house had to be taken away. The additional coverage for debris removal in Eddy's home-owners insurance policy: (a) Provides no debris removal coverage for vehicle damage. (b) Will cover only the expense of removing smashed pieces of eddy's house. (c) Will cover the expense of removing the smashed truck and smashed pieces of eddy's house. (d) Will cover only the expense of removing the smashed truck.

(d) The endorsement covers some causes of loss that are not covered under Sonny's home-owners insurance policy. - open perils basis on endorsement rather than named perils

An amateur photographer, Sonny's cameras, and related equipment are worth several thousand dollars. Why should Sonny probably consider scheduling his valuable equipment under a scheduled personal property endorsement to his HO 3 policy? (a) The endorsement's actual cash value coverage on scheduled items is preferable to the home-owners insurance policy's replacement cost coverage. (b) The home-owners insurance policy excludes theft coverage on cameras. (c) The home-owners insurance policy has a sub-limit on theft of cameras. (d) The endorsement covers some causes of loss that are not covered under Sonny's home-owners insurance policy.

30 days after receipt of insured's signed proof of loss

An insurer can repair/replace any damaged/stolen property instead of making a loss payment to the insured AS LONG AS the insurer provides the insured written notice within ______ days after receipt of insured's signed proof of loss.

$1,000 oer occurrence

Any damage to the property of others, if caused by an insured, is paid at replacement cost up to $____ per __________.

Named

Are the major coverages listed under the HO 2 Broad Form 'named' or 'open' perils, or both?

60

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

Coverage A: Dwelling Coverage B: Other Structures Coverage C: Personal Property Coverage D: Loss of Use

What are coverages for Section 1 of an HO Form?

$1,500

What is the sub-limit for loss by theft of jewelry, furs, and related items?

(a) Eva's loss assessment additional coverage applies.

Eva bought a single-family home in an "active adult" community that provides a clubhouse, swimming pool, snow removal, and other amenities which are supported by homeowners' association dues. Unfortunately, the association has inadequate property insurance on the clubhouse and charges Eva $750 as her share of paying for uninsured windstorm damage to the clubhouse roof. Does Eva's HO 3 policy cover this expense? (a) Eva's loss assessment additional coverage applies. (b) Eva's ordinance or law additional coverage applies. (c) No coverage applies because Eva's house was not damaged. (d) Eva's additional living expense coverage applies.

2 weeks

How long will an insurer cover prohibited use by federal, state, local gov.t, or state police for addt'l expense, rent/rental value for?

16

How many perils are specified under the 'named perils' for HO 3 Special Form?

$2,000 per year

How much money a year would a resident have to make a year participating/running a profession/occupation in their home for it to be considered a 'business'?

Yes because of the ensuing loss exception - loss caused by rodents is excluded but loss ensuing by a covered peril (fire) is covered.

If a rodent chews the insulation on electrical wires inside a wall of the insured's home and the chewed wire sparks & sets the wall on fire, is it covered? Why or why not?

ACV

If loss is more than 5% of dwelling & $2,500 the insured is only obligated to pay the ______ of the loss until the actual repair or replacement is complete.

(a) Cost of repair (b) ACV (c) RC (d) Policy limit

If the insured has HO 04-61 coverage the insurer agrees to pay the lowest of:

• Certain parts of other premises and structures shown on the declarations or acquired during the policy period; • Any premises used by the named insured in connection insured locations; • Any part of a premises not owned by an insured where he or she is temporarily residing; • Certain vacant land; • Certain land on which a residence is being built for an insured; • Cemetery plots or burial vaults belonging to an insured; and • Any part of a premises occasionally rented to an insured that is not for business purposes

In addition to the residence premises, what does an HO policy mean referring to an 'insured location?

at least 80% of Replacement Value of building

In order for insurer to pay RC for damaged building, the insured must carry at least ____ of replacement value of building.

$1,000

Insurer will pay up to $______ under specified situations, for the named insured's share of a liability loss assessment charged against him as the owner or tenant of the residence premises

Same in all 6 forms

Is the liability coverage the same or different in all 6 HO Forms?

Occurs on insured's premises & is a covered peril

Power failure is only covered if: (2)

(b) Medical expenses

Provides a goodwill type of payment that is made regardless of liability (a) Personal liability (b) Medical expenses

(a) Personal liability

Provides coverage against the financial consequences of the insured's legal liability to other parties for bodily injury and property damage (a) Personal liability (b) Medical expenses

• Claim expenses • First aid expenses • Damage to property of others • Loss assessment

Section II (Liability) of the homeowners form adds additional coverages for: (4)

$500

The Fire Department Service Charge addt'l coverage provides up to $___ of coverage.

$5,000

The Grave Markers addt'l coverage provides up to $_____ of coverage.

$15,000 with $250 deductible

The Identity Fraud Expense endorsement provides up to $_____ of coverage, subject to a $___ deductible.

$2,500

The Landlord's Furnishings addt'l coverage provides up to $____ of coverage.

$1,000

The Loss Assessment addt'l coverage will pay up to $____ of coverage.

10%

The Ordinance of Law addt'l coverage provides up to __% of dwelling limit.

5%; $500

The Trees, Shrubs, & Plants addt'l coverage provides up to __ % of dwelling limit but no more than $____ per item.

3 years

The insurer will pay reasonable and necessary medical expenses incurred or medically determined within ____ years from the date of the accident.

$1,000

The insurer will pay up to $____ to remove debris from an insured's property due to a covered peril.

30 days

Up to how many days will the insurer provide coverage for property removed from an endangered premises by a covered peril?

(a) Structures rented to someone not a tenant (b) Structure where business operated from (c) Structure used to store business property

What 'other structures' are excluded from an HO Policy?

1. Articles covered in other policy 2. Animals, birds, fish 3. Vehicles required to be registered 4. Aircraft 5. Hovercraft 6. Property of roomers/boarders/tenants not related 7. Property rented to others regularly (on/off premises) 8. Business data 9. Credit cards 10. Water & Steam

What 10 pieces of property are not covered under Section 1 of an HO?

Money or Property lost

What 2 things are not covered under an Identity Fraud Expense endorsement?

Notarization costs Lost income Loan application fees Attorney fees Long distance phone charges

What 5 expenses are covered under an Identity Fraud Expense endorsement?

1. Payable under property section 2. Intentional by insured 13+ YO 3. Owned by insured 4. Owned/Rented by tenant or resident of insured loc. 5. Business 6. Aircraft, Hovercraft, Watercraft, Motor Vehicle

What 6 circumstances are excluded regarding 'Damage to Property of Others'?

$2,500

What is the sub-limit for loss by theft of silverware & related items?

Ordinance or Law: addt'l coverage Earth movement Water damage: in exception to... Power failure: in exception to... Neglect War Nuclear hazard Intentional loss Governmental action Freezing of plumbing/AC-H/sprinkler system Under Construction theft Vacant 60 days - vandalism/mischief Mold/fungus/wet rot

What are the 13 exclusions as they apply to the HO Dwelling/Other Structures/PP, etc...?

Additional Living Expense Fair Rental Value Prohibited Use

What are the 3 sub-segments of Coverage D (loss of use) apply to?

Coverage E: Personal Liability Coverage F: Medical Payments to Others

What are the coverages for Section 2 of an HO Form?

Named Perils: Personal Property Limited Dwelling Also: Loss of Use Personal Liability Medical Payments

What are the coverages under HO 6 Form?

Dwelling & Other Structures based on amount to repair/replace using common construction materials/methods Also: Loss of Use Personal Liability Medical Payments

What are the coverages under HO 8 Form?

Named Perils: Personal Property No Dwelling/Other Structures unless... Also: Loss of Use Personal Liability Medical Payments

What are the coverages under the HO 4 Contents Broad Form?

Open Perils: Dwelling Other Structures Personal Property Also: Loss of Use Personal Liability Medical Payments

What are the coverages under the HO 5 Form?

• Provide prompt notice to insurer or its agent; • Notify police if a theft loss occurs; • Notify credit card or electronic fund transfer card company; • Protect property from further harm; • Cooperate with insurer in the investigation; • Prepare an inventory of damaged personal property; • If requested by the insurer, show damaged property, provide insurer with any documentation, and submit to examination under oath; and • Provide sworn proof of loss to insurer within 60 days after requested

What are the insured's duty to the insurer following a loss (8)

Fair rental value of insured's property rented to others if residence uninhabitable

What does the coverage 'fair rental value' indemnify the insured for?

Dwelling

What is Coverage A?

Other Structures

What is Coverage B?

Personal Property

What is Coverage C?

Loss of Use

What is Coverage D?

Personal Liability; Section 2

What is Coverage E & where is it listed?

Medical Expenses; Section 2

What is Coverage F & where is it listed?

Pay for a loss divided up by Homeowners' Association

What is a Loss Assessment as defined in the HO Form applying to property coverage?

Insured's House Structures attached to dwelling

What is considered as covered 'dwelling'?

Named Perils: Dwelling Other Structures Personal Property Also: Loss of Use Personal Liability Medical Payments

What is covered under HO 2 Broad Form?

Open Perils: dwelling & other structures Names Perils: personal property Loss of Use Personal Liability Medical Payments

What is covered under HO 3 Special Form?

Insured used reasonable care to maintain heat in building or shut off water & drain all systems and appliance of any water

What is the 1 reason that a loss caused by freezing of plumbing/AC-H/sprinkler system would be covered?

• The vehicle is required to be registered to operate on public roads; or • The vehicle is (1) Involved in any racing-related activities; (2) Rented to others; (3) Used to carry persons or cargo for a fee; or (4) Used for any business purpose except a golf cart while on a golfing facility.

What is the 1st part of the Motor Vehicle exclusion for liability/med pay? (5)

• In dead storage on an insured location; • Used solely for servicing residences; • Designed to assist the handicapped under certain circumstances; • Designed for recreational use off public roads under certain circumstances; or • A motorized golf cart under certain restrictions and situations.

What is the 2nd part of the Motor Vehicle exclusion for liability/med pay? (5)

HO 04-54

What is the Earthquake endorsement classified as?

HO 04-55

What is the Identity Fraud Expense endorsement classified as?

HO 04-26 and 27

What is the Limited Fungi, Wet/Dry Rot, or Bacteria endorsement classified as?

HO 04-90

What is the Personal Property Replacement Cost Loss Settlement endorsement classified as?

HO 04-60

What is the Scheduled Personal Property endorsement WITH Agreed Value loss settlement classified as?

HO 04-61

What is the Scheduled Personal Property endorsement WITHOUT Agreed Value loss settlement classified as?

Building additions & alterations paid for by the insured

What is the exception to dwelling & other structures not being covered under the HO 4 Form?

If property owned by insured/tenant of building

What is the exception to the business property exclusion in an HO Policy?

$1,000

What is the limit ($) for personal property that is usually located at another residence that is not temporary?

Broad

What is the other word used for 'named' perils?

$1,500

What is the sub-limit for Watercraft, including their trailers, furnishings, equipment, and engines?

$250

What is the sub-limit for antennas, CD's, & tapes in a motor vehicle?

$1,500

What is the sub-limit for business property AWAY from insured's premises?

$2,500

What is the sub-limit for business property on insured's premises?