Chapter 5
Under Coverage B of a Homeowners policy, all of the following are insured, except:
The renting of a garage to a neighbor for a woodworking business
An HO-3 policy will pay how much for a tree damaged in a windstorm?
$0
Under an unendorsed Homeowners policy, jewelry is covered up to what amount?
$1,500 for loss by theft
The HO-3 dwelling and other structures coverages are insured on which basis?
Open perils
Under a Homeowners policy, the limit of insurance applicable to Coverage B is what percentage of the Coverage A limit?
10%
Liability coverage may be provided by a Homeowners policy for the insured's use of which of the following watercraft?
20-foot sailing boat
Under a Homeowners policy, an unrelated resident in the care of the named insured is also considered an insured up to what age?
21
An insured has an HO-3 policy with a Coverage A limit of $250,000. Including debris removal, what is the maximum the policy will pay if a detached garage burns down?
26,250
The amount of insurance provided to cover personal property under Coverage C of a Homeowners Policy, is:
50% of Coverage A
Medical payments under Coverage F of a Homeowners policy may be provided to all of the following people, without needing to establish negligence, except:
A boarder
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
J has a Homeowners policy written on the HO-3 form. Which of the following people would not be considered an insured on J's policy?
A friend who is renting a bedroom in J's house since it is only three blocks away from work
Under the Watercraft Liability Endorsement on a Homeowners policy, an injury to which of the following people would be covered under Coverages E and F?
A guest of the insured
Homeowners policies cover all of the following losses to trees, shrubs, and plants, except:
A loss resulting from a windstorm
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 claim would be covered under Coverage E of a Homeowners Policy?
Bodily injury to a guest caused by the insured's pet dog
Section II of a Homeowners policy may cover which of the following incidents?
Bodily injury to a stranger, caused by an insured's activities while picnicking at a city park
Under the HO-4 and HO-6, personal property is covered on which basis?
Broad Form perils basis
A Special Form Homeowners policy will provide all of the following, except:
Coverage for the dwelling on a named perils basis
Under the Homeowners forms, Coverage C provides 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 a Homeowners policy?
Coverage B
Which coverage on the Homeowners forms 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
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
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
Under Section II of a Homeowners policy, all of the following are covered, except:
Damage to property of the insured
An insured has an unendorsed HO-3 policy on their home. The insured's property sustains $1,500 of damage caused by back up of the sewer. The insurer will:
Deny coverage
Choose the false statement about a Homeowners Policy.
Earth movement is covered in all Homeowners policies
Any liability coverage provided by a Homeowners policy is:
Excess insurance, unless other insurance is written as excess insurance
All of the following are defined as insured locations under a Homeowners policy, except:
Farmland owned by the insured
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
A deer chews a hole in an insured's shed sitting next to a pond. Which of the following forms could cover this damage?
HO-3
A tenant should buy which of the following Homeowner policy forms?
HO-4
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, including open perils coverage for personal property. Which policy would the agent recommend?
HO-5
Which form is designed for the unit-owner of a condominium?
HO-6
Under Section II of a Homeowners policy, which of the following statements about the Damage to Property of Others Additional Coverage is not correct?
It duplicates coverage that is included in Section I
Which of the following is true concerning the Home Day Care Coverage Endorsement added to a Homeowners policy?
It extends Section II coverages to the insured's home day care business
Which of the following is true regarding an unendorsed HO-4?
It provides named perils coverage on an actual cash value basis
Section I of a Homeowners policy does NOT include which of the following coverages?
Liability
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 defames, libels, or slanders another person
Medical payments coverage would apply if the family dog were to bite someone 3 blocks from home
Loss assessment charges against the insured by a property owner's association are excluded
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
An HO-3 policy provides coverage on which basis?
Open perils coverage on the dwelling and named perils coverage on personal property
Which type of liability limit applies to medical payments coverage provided by a Homeowners policy?
Per person limit
The following coverages are all found under Section I of a Homeowners policy, except:
Personal Injury Liability
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
Liability for use of which of the following vehicles is not covered by a Homeowners policy?
Recreational dune buggy that is owned by the insured and used on a public beach
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
Under Section II of a Homeowners policy, which of the following is correct??
Section II is the same on 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
All of the following are true of a Homeowners Policy, except:
Section II provides coverage for damage to the insured's property
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
All of the following are true of the HO-2, except:
The HO-2 covers losses to the dwelling on an open perils basis
Choose the true statement concerning Homeowners Policies.
The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement
Which statement is true concerning Coverage D of a 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
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
Theft from the site of a dwelling under construction
The dwelling on the premises plus structures that are attached to the dwelling
Under a Homeowners Policy, Coverage A includes coverage for:
The dwelling on the premises plus structures that are attached to the dwelling
In addition to the named insured of a Homeowners policy, coverage is automatically provided for:
The insured's resident spouse
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 C special limits of liability, Homeowners policies cover:
Theft of furs and jewelry up to $1,500
Which of the following special limits of liability is provided under Coverage C?
Theft of furs are covered up to $1,500
The HO-6 would provide coverage for all of the following losses, except:
Theft of the insured's pet
Under a Homeowners policy, medical payments coverage will apply to medical expenses incurred after an accident within:
Three years
All of the following are true of a Homeowners Policy, Coverage F, except:
Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year
Insured locations under a Homeowners policy include all of the following, except:
Vacant farm land
Coverage C on the HO-3 would cover which of the following losses?
Vandalism loss to property the insured borrows from a neighbor
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 a Homeowners policy:
When the property has been vacant for 65 consecutive days
All of the following are considered an insured under a Homeowners policy, except:
A 30-year-old friend living at the insured premises
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
Under Section II of a Homeowners policy, which of the following may receive medical payments for expenses incurred following a bodily injury?
A guest of the insured on the residence premises
Which of the following items of property is covered under the Homeowners policies?
A model airplane
First Aid Expenses under the Homeowners Policy would cover:
A neighbor who gets injured while helping the insured install a carpet
Under the HO-8 policy, the dwelling is valued on which basis?
Actual cash value
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
Which statement is true concerning Homeowners policies?
The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement
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
An insured with a $500,000 HO-5 policy incurs $1,500 in damages due to a flood destroying the wood flooring. The policy deductible is $250. The policy will pay:
$0
K has a Homeowners policy with a $100,000 Coverage E limit and a $1,000 Coverage F limit. A guest falls in K's house, and their injuries result in $1,500 of medical expenses incurred over three months. How much will K's policy pay?
$1,000
The insured is part of a homeowners association. After a property loss to the common area owned by all of the association's members, the insured is assessed $1,500 for the damages. The insured's Homeowners policy will provide:
$1,000 of coverage
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
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
S has an HO-5 policy with a $250,000 Coverage A limit. After a strong wind blows a mailbox into S's front 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
C's debit card is stolen, and $1,000 is subsequently stolen from their account. How much will C's HO-3 policy pay for the loss?
$500
Under a Homeowners policy, how much coverage is provided for theft or unauthorized use of a credit or debit 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
Under Section II of a Homeowners policy, all of the following are covered, except:
$60,000
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 on a Special Form Homeowners policy is what percentage of the Coverage A limit?
50%
Coverage is provided under Coverage B of H's policy
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
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
Which of the following parties is eligible to receive medical payments under Section II of a Homeowners policy?
A residence employee
Coverage C of a Homeowners policy includes property coverage for:
An owned camera used by the insured while on vacation in another country
Which property would be settled for its actual cash value even if the Personal Property Replacement Cost Loss Settlement Endorsement is attached to an HO-3 policy?
Antiques
Which of the following is true regarding the HO-4 and HO-6 forms?
Both forms are used to insure the personal property and personal liability of the insured, but not necessarily the structure itself
Under a Homeowners Policy, structures on the premises that are separated by a clear space from the dwelling, are covered under:
Coverage B
Which of the following statements about Coverage C under the Homeowners policy is incorrect?
Coverage C provides coverage for the property of roomers and boarders at the insured's request
Which statement about Section II of a Homeowners Policy is false?
Coverage F limits are subject to a deductible
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
The Home Day Care Coverage Endorsement added to a Homeowners policy does not provide:
Liability overage for injuries to a day care employee
Medical payments coverage under Section II of a Homeowners policy would cover all of the following expenses, 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
Under a Homeowners policy, which statement about personal property coverages is incorrect?
Money is covered up to $500 per occurrence on an unendorsed policy
On a Special Form Homeowners policy, the dwelling and other structures are insured against which perils?
Open perils
Coverage for injury resulting from invasion of privacy is covered under which Homeowners endorsement?
Personal Injury
Which of the following endorsements to the Homeowners Policy adds coverage for injury 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
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 coverage of the insured's Homeowners policy may pay for part of the damage?
Personal liability
Which of the following would NOT be considered part of the residence premises on a Homeowners policy?
Premises rented occasionally to the named insured for personal use
All of the following definitions apply to 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 a Homeowners policy?
Property damage to property owned by an insured
Which statement concerning coverage provided by Homeowners policies is correct?
Property located in a student dormitory off the residence premises is covered by Coverage C
Under Coverage C of a Homeowners policy, losses to all of the following are covered, except:
Property of a tenant
Which of the following is not true of the HO-2?
The HO-2 pays for losses on an open perils basis
Which of the following would NOT be an insured under Section II of the Homeowners policy?
The insured's tenant
Under Coverage A of Homeowners policies, 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
