Chapter 5
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 their driveway, what is the most the insured will collect from the policy?
$1,250
Under the unendorsed Homeowners Policy, jewelry is covered up to what amount?
$1,500 for loss by theft
P insures a home for $100,000 on a Special Form Homeowners policy. After a fire, the dwelling suffers a $60,000 loss, a detached garage has $15,000 worth of damages, and the home's contents sustain $20,000 in damage. P also incurs $35,000 in additional living expenses and loss of rental income while the dwelling is repaired. How much would the insurer pay?
$120,000
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?
$2,750
Including debris removal, what is the maximum an HO-3 policy with a Coverage A amount of $250,000 will pay if a detached garage burns down?
$26,250
Policyholder C's debit card is stolen, and $1,000 is subsequently stolen from his account. How much will his HO-3 pay for the loss?
$500
Under a Homeowners Policy, how much coverage is provided for theft or unauthorized use of a credit card?
$500
Which of the following claims would not be covered under Section II of a Homeowners Policy?
$500 a day for the insured's loss of earnings while defending a suit
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
What is the limit of insurance available under an HO-3 policy for a tree totally damaged in a hail storm?
0%
Under a Homeowners Policy, Coverage B is what percentage of Coverage A?
10
Under the Homeowners Policy, an unrelated resident in the care of the insured is covered up to what age?
21
Under the Homeowners Policy, Medical Payments coverage will apply to expenses that are incurred within what length of time following an accident?
3 years
In the event an apartment attached to the insured's home is damaged and unlivable, what percentage of Coverage A does the HO-3 provide for the rental value?
30%
The amount of insurance provided to cover personal property of a Homeowners Policy is what percentage of Coverage A?
50%
Under an HO-3 policy, what is the coinsurance requirement?
80%
All of the following are considered to be insured under a Homeowners Policy, except:
A 25-year-old friend who is living with an insured
All of the following would be 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
Coverage C of the Homeowners policy would cover which of the following?
A camera stolen while the insured is on vacation
Which of the following is false in regard to the Home Day Care endorsement?
A day care employee is covered
Under the Watercraft Liability endorsement, an injury to which of the following people WOULD be covered under Coverages E and F?
A guest of the insured
Which of the following property is covered under the Homeowners Policy?
A model airplane
Which of the following claims would be covered by the First Aid Expenses under the Homeowners Policy?
A neighbor is injured while helping the insured install a carpet
First Aid Expenses under the Homeowners Policy would cover:
A neighbor who gets injured while helping the insured install a carpet
Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as:
A residence employee
Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?
A residence employee
Which of the following residents in the insured's dwelling is eligible to receive medical payments under Section II of a Homeowners Policy?
A residence employee
A Homeowners policy could be used to insure all of the following dwellings, except:
A tenant-occupied house used exclusively as a rental property
Under the HO-8 policy, the dwelling is valued on which basis?
Actual Cash Value
All of the following are covered under a Homeowners Policy, except:
All living expenses incurred when a dwelling becomes uninhabitable after a covered loss
Which of the following is covered under Section II of a Homeowners Policy?
An injury to a guest of the insured
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 Homeowners Forms, Coverage C includes which type of coverage?
Contents and Personal Property
Structures on the premises separated by clear space from the dwelling are covered under which part of the Homeowners Policy?
Coverage B
Choose the false statement about the Homeowners Policy.
Coverage C extends to animals, birds, or fish owned by the insured
Under the Homeowners policy, which coverage provides indirect loss coverage?
Coverage D
All of the following are true, except:
Coverage D of a Homeowners Policy includes loss of income from an incidental business
All of the following statements are correct about a Homeowners Policy, except:
Coverage D of a Homeowners Policy includes loss of income from an incidental business
Which statement about Section II of a Homeowners Policy is false?
Coverage F limits are subject to a deductible
The Home Day Care endorsement does not provide which of the following?
Coverage for a day care employee
A dwelling and detached garage are insured on an HO-2 policy against named perils. If the garage collapses due to the weight of snow, how does coverage apply?
Coverage is provided as an Additional Coverage
H is the named insured on a Special Form Homeowners policy. H owns a structure, separate from the dwelling, that is being rented to a family friend for use as a private garage. If the garage sustains a fire loss, how will the insurer respond?
Coverage is provided under Coverage B of H's policy
R owns a home insured by an HO-3 policy and rents out a suite over a detached garage to tenants. R's furniture used to furnish the suite is:
Covered up to $2,500 as an Additional Coverage
Which of the following homeowners coverages does not have a deductible?
Damage to Property of Others
Liability for use of which of the following vehicles is not covered by the Homeowners policy?
Dune buggy used on a public beach
Choose the false statement about a Homeowners Policy.
Earth movement is covered in all Homeowners policies
Which statement about the Homeowners Policy is false?
First Aid Expenses include first aid to an insured in the event of an injury
The HO-8 form settles losses to the building on what valuation method?
Functional Replacement Value
A Broad Form Homeowners policy would cover all of the following personal property losses, except:
Furniture lost due to a mudslide
The following are all Additional Coverages under a Homeowners Policy, except:
Governmental Action
Which form is designed for Tenants?
HO-4
New home buyer S called an agent and requested the broadest coverage available for S's new home. Which policy would the agent be most likely to recommend?
HO-5
Which form is designed for the unit-owner of a condominium?
HO-6
All of the following are categories of personal property with a special limit of insurance under Coverage C of a Homeowners Policy, except:
Household appliances
Which of the following is true regarding an unendorsed HO-4?
It includes the Broad Form named perils on an actual cash value basis
Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy?
Liability arising from publication of material that violates another person's right of privacy
All of the following are true of Section II of a Homeowners Policy, except:
Loss assessment charges against the insured by a property owner's association are excluded
Medical Payments under Section II of the Homeowners Policy would cover all of the following, except:
Loss of income of an injured person
When coverage is provided under the Additional Coverages of Section II of a Homeowners policy, payments are:
Made in addition to policy limits
Which coverage cannot be provided under Section II of a Homeowners Policy?
Medical expense of a boarder
Which statement is false under a Homeowners Policy?
Money is covered up to $500 per occurrence
Under a Homeowners policy, medical payments provided by Coverage F are:
Not an admission of the insured's liability
Up to what amount of coverage is provided for a $1,000 shed if the insured doesn't use an available fire extinguisher to put out a shed fire?
Nothing
Which of the following is not true about the Home Business endorsement?
Only property damage is covered
The HO-5 personal property coverages are insured on which basis?
Open Perils
The HO-3 dwelling and other structures coverages are insured against which perils?
Open perils
On a Special Form Homeowners Policy, which of the following coverages is provided under the Property Removed Additional Coverage?
Open perils coverage for 30 days
An HO-3 policy provides coverage on which basis?
Open perils coverage on the dwelling and broad form coverage on the personal property
Which type of liability limit applies to Medical Payments coverage?
Per person
Coverage for injury resulting from invasion of privacy is covered under which Homeowners endorsement?
Personal Injury
All of the following items of property are considered property not covered under Coverage C of a Homeowners policy, except:
Personal property of a guest
Which of the following is NOT a residence premises in the Homeowners Policy?
Premises rented occasionally to the named insured for nonbusiness purposes
All of the following definitions are true of a Homeowners Policy, except:
Property damage is physical injury to tangible property, but does not include loss of use of that property
Which of the following would not be covered under Section II of the Homeowners Policy?
Property damage to property owned by an insured
Which of the following is not covered under Section II of the Homeowners Policy?
Property of the insured
Which statement is true concerning Homeowners policies?
Property usually located in a student dormitory 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 which of the following under Section II of the Homeowners Policy?
Residence employee
In respect to Section II of a Homeowners Policy, all of the following are true, except:
Section II losses are subject to a standard $250 deductible
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
Which of the following is not true of the HO-2?
The HO-2 pays for losses on an open perils basis
Which statement is true concerning Coverage D of the Homeowners Policy?
The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living
Which of the following is true regarding the HO-3 (Special Form)?
The dwelling and other structures (Coverages A and B) are written on an open perils basis
Choose the correct statement regarding the HO-3.
The dwelling and other structures are written on an open perils basis
If glass that is part of an insured dwelling is broken, a Special Form Homeowners policy will cover the loss under all of the following circumstances, except:
The dwelling has been vacant for 70 consecutive days
Coverage A under the Homeowners Policy includes coverage for which of the following?
The dwelling on the insured premises, plus any structures that are attached to the dwelling
In addition to the named insured in a property policy, coverage is automatically provided for:
The insured's spouse
Which of the following would not be an insured under Section II of the Homeowners Policy?
The insured's tenant
Under Coverage A of the Homeowners Policy, all of the following are covered, except:
The land on which the dwelling is located
Which of the following is not covered under Coverage A of the Homeowners Policy?
The land on which the dwelling is located
If an owner-occupied home is totally destroyed without fraud by a fire, the amount of the loss is based on:
The policy limit
Which of the following best describes the Debris Removal coverage under the Homeowners policy?
The policy will pay the insured for removing debris from a covered loss
Under Coverage B of a Homeowners Policy, all of the following are included, except:
The renting of a garage to a neighbor for a woodworking business
Which of the following special limits of liability is provided under Coverage C?
Theft of furs are covered up to $1,500
Which of the following is true regarding the HO-4 and HO-6 forms?
They are used to insure the personal property and personal liability of the insured, but do not include the structure itself
As defined by Homeowners policies, a business includes all of the following, except:
Volunteer activity
Choose the statement that best describes when one would purchase an HO-8?
When insuring an older home that might create a moral hazard when insurance is written at Replacement Cost
Which of the following best describes the reason to purchase an HO-8?
When insuring an older home that might create a moral hazard when insurance is written at replacement cost
Vandalism and malicious mischief losses are excluded under the Homeowners Policy:
When the property has been vacant for 65 consecutive days
An insured with a $500,000 HO-5 policy incurs $1,500 in damages due to a flood destroying the wood flooring. The policy will pay:
Zero
If the insured fails to use an available fire extinguisher to put out a shed fire that results in $1,000 damage, how much will an HO-3 Policy pay for the claim?
Zero
