Chapter 5- 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

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

$500

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 for theft or unauthorized use of a credit card or eft

L owns a home covered under 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

In the event of an apartment attached to the insured's home is damaged and unlivable, what percentage of Coverage A does the Ho-3 provide for rental value

30%

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

Coverage C of the Homeowners policy would cover which of the following?

A camera stolen while the insured is on vacation

Section II of a Homeowners Policy covers which of the following for medical payments?

A guest of the insured on the residence premises

The homeowners policy provides coverage for all of the following, except

A motorized golf cart being driven to or from a golf facility

First Aid Expenses Under the Homeowners Policy would cover:

A neighbor who gets injured while helping the insured install a carpet

Which of the following would not be eligible to purchase a homeowners policy?

A person who owns and lives on a farm

Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?

A residence employee

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 settle for its actual cash value even if the Personal Property Replacement Cost Loss Settlement Endorsement is attached to the HO-3 Policy?

Antiques

Section II of a Homeowners policy may cover which of the following incidents?

Bodily injury caused by an insured activities while picnicking at a city park

Choose the false statement about homeowners policy.

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

Choose the false statement about the Homeowners Policy

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

Which of the following statements about coverage C under Homeowners Policy is false?

Coverage C provides Coverage for the property if roomers and boarders

All of the following statements is correct about a Homeowners Policy, except:

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

All of the following are true, except:

Coverage D of a homeowners Policy includes loss of income from an incidental business

Which of the following statements about section II of the Homeowners Policy is false?

Coverage F limits are subject to a deductible

Liability for use of which of the following vehicles is not covered by the Homeowners policy?

Dune buggy used on a public beach

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

Functional Replacement Value

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

Functional replacement value

A tenant should buy which of the following Homeowner Policy Forms?

HO-4

Which form is designed for the unit-owner of a condominium?

HO-6

Which coverage is not provided under Section II of a Homeowners Policy?

Medical expenses of a boarder

Which of the following coverages is provided under additional coverage of property removed?

Open peril coverage for 30 days

Which of the following is not true about the home Business endorsement?

Only property damage is covered

Which of the following endorsements to the Homeowners Policy adds coverage for injuring resulting from libel, slander, false arrest, defamation, invasion of privacy and other such offenses that could result in a personal liability suit?

Personal Injury Endorsement

The following coverages are all found under Section I of the Homeowners Policy, except:

Personal Injury Liability

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

Personal injury liability

When using a neighbor's lawnmower, the insured strikes a large rock and causes $2,000 in damage to the neighbor's automobile. Which policy section of the insured's Homeowners policy may pay for part of the damage?

Personal liability

When using a neighbor's lawnmower, the insured strikes a large rock and causes $2,000 in damage to the neighbors automobile.

Personal liability

Under Coverage C of a Homeowners Policy, all of the following losses are included, except:

Property of a boomer, boarder or tenant

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

Which of the following is true regarding Section II of the Homeowners Policy?

Section II is the same in all Homeowners Forms

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 statement 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 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 insureds normal standard of living

Which of the following is not true concerning Section II of the Homeowners Policy?

The damage to property of Others duplicates coverage that is included in Section I

Which of the following is true regarding the HO-3 (Special form)?

The dwelling and other structures (Coverage A and B) are written on an open perils basis

Under a Homeowners Policy, Coverage A includes Coverage for:

The dwelling on the premises plus structures that are attached to the dwelling

Which of the following would not be an insured under Section II of the Homeowners Policy?

The insured's tenant

which of the following is not covered under Coverage A of the homeowners Policy?

The land on which the dwelling is located

Under Section II of the Homeowners Policy, a one or two family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as:

The residence permises

Insured locations under a Homeowners Policy might include all of the following, except:

Vacant Farm land

Insured locations under a Homeowners Policy might include all of the following, except

Vacant farm land

Choose the statement that best describes when one would purchase a 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 60 consecutive days

An insured with a $500,000 HO-5 Policy incures $1,500 in damages due to a flood destroying the wood flooring. The policy will pay:

Zero

Which statement regarding medical payments under a homeowners policy is true?

medical payments under homeowners policy will cover funeral expenses

The HHO-5

poen perils

All of the following definitions are true of a Homeowners Policy, Except:

property damage- Physical injury to tangible, but does not include loss of use of that property

Under Coverage C of a Homeowners Policy, all of the following losses are included, except

property of a roomer, boarder or tenant

Limit for watercraft including trailers is

$1,500

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 inhabitable due to a fire loss

60,000- 30% of coverage

All of the following are considered to be insured under a homeowners policy, Except

A 25 year old friend who is living with the 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 E of a Homeowners Policy would cover which of the following?

Bodily injury to a guest caused by the insureds pet dog

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

Broad perils coverage

Which of the following homeowners coverage does not have a deductible?

Damage to property of others

Which statement is true concerning Section II of a Homeowners Policy?

Damage to property of others coverage is provided up to a specified limit regardless of negligence

Which of the following is true regarding an unendorsed HO-4(tenants form)

It includes the Broad Form Named perils on actual cash value basis

When using neighbors lawnmower, the insured strikes a large rock and causes $2,000 in damage to the neighbor's automobile. Which policy section of the insured's Homeowners policy may pay for part of the damage?

Personal liability

Choose the answer that is true regarding the Homeowner HO-4 and HO-6 forms

The HO-4 is used to insure the personal property and personal liability of the insured, but does not include the structure itself

Choose the answer that is true regarding the homeowner HO-4 and HO-6 forms

The HO-4 is used to insure the personal property and personal liability of the insured, but does not include the structure itself

Choose the answer that is true regarding the Homeowner HO-4 and HO-6 Forms

The HO-4 is used to insure the personal property and personal liability of the inured, but does not include the structure itself

Choose the true statement concerning Homeowners Policies.

The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsment

Which of the following is true regarding the HO-3 (special form)

The dwelling and other structures (coverage A and B) are written on an open perils basis

Which of the following is true regarding eligibility of a homeowners policy?

The dwelling must be the principle residence of the insured

If an owner occupied home is totally destroyed without fraud by fire, the amount of the loss is based on:

The policy limit

If an owner- occupied home is totally destroyed without fraud by a fire, the amount of 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's removing debris from a covered loss

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

Select the person who is not considered an insured under an HO-3 policy?

a friend who is renting a bedroom in the insured's house since it is only three blocks away from work

First Aid Expenses under the Homeowners Policy would cover:

a neighbor who gets injured while helping the insured install carpet

Coverage C of a homeowners policy includes:

an owned camera used by the insured whole on vacation in another country