Chapter 6 - homeowners policy

An insured has an HO-3 policy with a Coverage A limit of $200,000. What is the maximum amount the policy will pay if a detached garage burns down, including the amount provided for the cost of debris removal expenses?

$21,000

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

The Business Pursuits Endorsement is commonly added to Homeowners policies to insure which professional?

Teachers

Under a Homeowners policy, medical payments coverage will apply to medical expenses incurred after an accident within:

3 years

The HO-3 covers losses to other structures causes by which of the following perils?

Abrupt collapse from defective construction materials

Which statement about watercraft coverage provided by a Homeowners policy is correct?

A $1,500 special limit applies to watercraft damaged by a covered peril

A Broad Form Homeowners policy protects the insured's personal property:

against named perils

A Broad Form Homeowners policy would cover which of the following losses?

Building glass breakage caused by an earthquake

Personal liability coverage provided by a Homeowners policy would cover which of the following?

Bodily injury to a guest caused by the insured's pet dog

Under a Homeowners policy, which of the following payments are paid in addition to the limits of liability?

Claim expenses when a suit is brought against the insured for bodily injury damages

Under the Homeowners forms, Coverage C provides which type of coverage?

Contents and personal property

R owns a home insured on 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

Section II of a Homeowners policy would not provide liability coverage for:

Damage to the property of others arising out of the insured's business pursuits

The definition of fungi provided by the Limited Fungi, Wet or Dry Rot, or Bacteria Endorsement of a Homeowners policy includes all of the following, except:

Fungi intended for consumption

A Broad Form Homeowners policy would cover all of the following personal property losses, except:

Furniture lost due to a mudslide

A mobile home may obtain property insurance in which of the following ways?

HO-2 or HO-3 policy with the Mobile Home Endorsement

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?

HO5

Under a Homeowners policy, personal liability coverage would exclude coverage for all of the following injuries, except:

Injury to a guest who falls down the stairs

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 regarding an unendorsed HO-4?

It provides named perils coverage on an actual cash value basis

Under a Homeowners policy, which statement about personal property coverages is incorrect?

Money is covered up to $500 per occurrence on an unendorsed policy

K owns and occupies a single-family dwelling that K insures on an unendorsed Special Form Homeowners policy for $250,000 with a $1,000 deductible. K has a large structure at the back of the lot that K uses for a manufacturing business. If a fire loss results in $20,000 in damage to the structure, plus an additional $10,000 for debris removal expenses, K's Homeowners policy will pay:

Nothing

Coverage C of the HO-5 offers a special limit of coverage for which of the following types of property?

Property off-premises used primarily for business purposes

V owns a home in good condition that is protected by an HO-2 for $300,000. V lives in the home and uses a detached structure on the premises for rental purposes. All of the following statements about property coverage provided by V's policy are correct, except:

The HO-2 covers losses to the dwelling on an open perils basis

Which of the following best describes coverage options an insured has when an Earthquake Endorsement is attached to an HO-3 policy?

The insured may opt in to coverage for exterior masonry veneer

Under Coverage C special limits of liability, Homeowners policies cover:

Theft of furs and jewelry up to $1,500

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

Vacant farm land

after an accident that causes bodily injury, section II of a homeowners policy will cover the costs of first aid provided to all of the following parties EXCEPT

an insured injured on the residence premises

On a Special Form Homeowners policy, the dwelling and other structures are insured against which perils?

open perils

under coverage C of a homeowners policy, losses to all of the following may be covered EXCEPT

property of a tenant

as defined by homeowners policies, a business include all of the following EXCEPT

volunteer activity