Chapter 6 EXAM: Home Owner's Policies

An HO-3 policy will pay how much for a tree damaged in a windstorm?

$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

Section II of a Homeowners policy includes the Damage to Property of Others Additional Coverage, which provides what limit of insurance?

$1,000

P insures a home for $100,000 on a Special Form Homeowners policy with standard coverages. After a fire, the dwelling suffers a $60,000 loss, a detached garage has $15,000 worth of damage, 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

An insured adds the Personal Property Replacement Cost Endorsement to their Homeowners policy. In the event of a loss, the insurer will pay the actual cash value of the property until repair or replacement is complete if the repair or replacement cost exceeds what amount?

$500

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

$500

Under the Trees, Shrubs, and Other Plants Additional Coverage, the policy will pay up to what amount for any one tree, shrub, or plant?

$500

L owns a home covered under an HO-3 for $200,000. Under Coverage D, how much coverage does L have for lost rental income if the basement apartment becomes uninhabitable due to a fire loss?

$60,000

If an insured plans to sue the insurer, the insured must bring that legal action within:

2 years of the loss

A related, full-time student away at school is considered an insured on a Homeowners policy if thy are under what age?

24

On a Broad Form Homeowners policy, if the cost of a covered loss to a structure and any debris removal expenses exceeds policy limits, how much additional coverage is provided to pay any remaining debris removal expenses?

5% of the applicable limit

If the amount of a covered loss plus any debris removal expenses exceeds the policy's limit of liability, the Debris Removal Additional Coverage provides additional debris removal expense coverage equal to:

5% of the limit applicable to the loss

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 for the breakage of glass or safety glazing material is not provided if the dwelling was vacant for more than how many consecutive days immediately before the loss?

60

Under an HO-3 policy, what is the coinsurance requirement?

80%

All of the following are considered an insured under a Homeowners policy, except:

A 30-year-old friend living at the insured premises

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

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

The Loss Assessment Additional Coverage provided by Section II of a Homeowners policy will cover the insured's share of loss assessments charged by any of the following, except:

A governmental body

Liability coverage provided by a Homeowners policy would provide coverage for bodily injury liability arising out of all of the following, except:

A guest gets the flu from an insured

Which of the following boats owned by the insured could be covered under the Watercraft Liability Endorsement on a Homeowners policy?

A jet boat

Which of the following items of property is covered under the Homeowners policies?

A model airplane

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 parties is eligible to receive medical payments under Section II of a Homeowners policy?

A residence employee

Following a bodily injury on the residence premises, an unendorsed Homeowners policy may provide medical payments to:

A residence employee in the course of their employment by the insured

Which residential dwelling is eligible for a Homeowners policy?

A single-family home occupied by its owner and 2 roomers

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

Abrupt collapse from defective construction materials

If other insurance applies to a loss also covered by Section II of a Homeowners policy, the Homeowners policy:

Acts as excess insurance

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

Against named perils

An unendorsed Homeowners policy may provide liability coverage for the use of all of the following watercraft, except:

An inboard motorboat owned by the insured that is used for business purposes

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

On a Homeowners policy, the insured location includes all of the following premises, except:

Any premises used in connection with the insured's business

Personal liability coverage provided by Section II of a Homeowners policy covers damages for which the insured is legally liable resulting from:

Bodily injury or property damage

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

Building glass breakage caused by an earthquake

Coverage D - Loss of Use includes all of the following coverages, except:

Business income

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

An insured has a Homeowners policy that protects a dwelling and a swimming pool. While a guest is staying with the insured, the insured's 8-year-old child takes the guest's phone and purposefully throws it into the pool. The insured's policy will:

Cover the damage under the Damage to Property of Others Additional Coverage

Structures on the premises separated by clear space from the dwelling are covered under which part of a Homeowners policy?

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

N buys a new home and maintains their first home as a rental property. The new home is insured on an unendorsed Special Form Homeowners policy for $250,000 with an 80% insurance to value requirement. The Special Form will provide all of the following coverages, except:

Coverage for the home on a named perils basis

F rents out their basement to a tenant. After a fire loss to a neighbor's premises, a civil authority keeps F and the tenant from being able to use the dwelling. Which statement best describes the period during which the loss of rent is paid by F's Homeowners policy?

Coverage is provided for no more than 2 weeks

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

Which of the following would be covered under the Damage to Property of Others Additional Coverage of a Homeowners policy?

Damage caused intentionally by the insured's 10-year-old son

Unless added by the insured, the Earthquake Endorsement on a Homeowners policy will exclude which of the following coverages?

Damage to exterior masonry veneer

Y has an unendorsed Special Form Homeowners policy (HO-3) on their home with a $500 deductible. The home's old sewer system backs up, resulting in $1,500 of damage to floors and Y's personal property. When Y submits information related to the loss to the insurer, the insurer will:

Deny coverage

Which of the following losses covered by a Homeowners policy would be subject to a deductible?

Floor damage after water overflows from an appliance

The following are all Additional Coverages provided by Homeowners policies, except:

Governmental Action

Which of the following is a Section I Exclusion in a Homeowners policy?

Governmental action

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

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

K left their expensive watch in their car overnight. In the morning, K finds that someone broke into the car and stole the watch. Which policy would cover the loss of the watch?

HO-3

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

The duties required of an injured person seeking coverage under Medical Payments to Others of an insured's Homeowners policy include all of the following, except:

Help the insurer in settling the claim

While visiting the local dog park, P's dog jumps on R. Later, R sues P, claiming the dog attacked them and caused bodily injury and suffering. Under Section II of P's Broad Form Homeowners policy, all of the following statements are correct, except:

If R's legal claim is deemed to be false or fraudulent, P's insurer will not cover the defense costs

When added to a Homeowners policy, the Personal Injury Endorsement adds liability coverage for all of the following injuries, except:

Intentional invasion of a boarder's right of privacy

A Unit-Owners Form Homeowners policy covers all of the following under the policy's dwelling coverage, except:

Land

The Home Day Care Coverage Endorsement added to a Homeowners policy does not provide:

Liability coverage for injuries to a day care employee

When personal property is insured on the Scheduled Personal Property Endorsement attached to a Homeowners policy, it is subject to all of the following coverage terms, except:

Losses are subject to the Section I deductible

On a Special Form Homeowners policy, Coverage C has a special limit of liability applicable to all of the following losses, except:

Misplaced pearl earrings

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

Personal property is protected on the HO-3 against loss by all of the following perils, except:

Off-premises power failure

An insured insures an expensive pair of earrings on the Scheduled Personal Property Endorsement added to their Homeowners policy. Coverage is provided:

On an open perils basis by the endorsement

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

Open perils

R insures their home on a Broad Form Homeowners policy. When the dwelling is endangered by a fire on the neighboring premises, R removes personal property from the home to protect it from the potential loss. While removed, the personal property is covered on a(n):

Open perils basis

The Scheduled Personal Property Endorsement on a Homeowners policy provides which of the following coverages to described property?

Open perils coverage

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 named perils coverage on personal property

Homeowners policies define the insured location to include all of the following, except:

Other premises rented to an insured for business use

Y uses a separate structure on the residence premises exclusively as a studio for an incidental business. If Y wants expanded coverage for the structure, business personal property, and liability arising out of the business, which Homeowners endorsement would Y's agent recommend?

Permitted Incidental Occupancies

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

Personal injury liability

An insured's young children were playing in the backyard and accidentally threw a ball through the neighbor's window, damage an expensive vase owned by the neighbor. The neighbor sues the insured for the losses. Damages the insured owes to the neighbor are covered by which part of the insured's Homeowners policy?

Personal liability coverage

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 item of property is considered property NOT covered by Coverage C?

Personal property of a tenant

In what way is the HO-5 Comprehensive Form different from the HO-3 Special Form?

Personal property under the HO-5 is insured on an open perils basis

The Ordinance or Law Additional Coverage on a Homeowners policy will cover an increase in costs that results from the enforcement of an ordinance or law regulating all of the following, except:

Pollutant testing and removal from an insured premises

Under the Homeowners forms, coverage for grave markers is:

Provided as an Additional Coverage

The Scheduled Personal Property Endorsement on a Homeowners policy may insure all of the following types of property, except:

Rare or exotic animals

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 insured with a Broad Form Homeowners policy suffers a fire loss that damages the dwelling and personal property. The loss to the dwelling is valued at its:

Replacement cost

H's jewelry is covered under Coverage C of their Broad Form Homeowners policy, but theft of jewelry is subject to a special limit of liability. If H wants better coverage for a $10,000 necklace inherited from their mother, including insurance against more perils and a higher limit of liability, which endorsement might H's agent recommend?

Scheduled Personal Property Endorsement

Which of the following correctly describes the HO-2?

The HO-2 insures against named perils

A dwelling insured on an HO-3 policy suffers a partial fire loss. Before actual repair or replacement is complete, the insurer will pay up to:

The actual cash value of the damaged portion of the dwelling

Under the Loss Settlement condition on a Homeowners policy, all of the following types of property are always settled on an actual cash value basis, except:

The dwelling

The insured has a guest over at their house. Which of the following injuries would be excluded from coverage on the insured's Homeowners policy?

The guest catches the flu from the insured

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 a Homeowners policy, which of the following property losses to watercraft is NOT covered?

The insured's kayak is stolen from a public beach while the insured is on vacation

If a Homeowners policy provision is change, the change must be made in writing by:

The insurer

Which of the following is not covered under Coverage A of the Homeowners policy?

The land on which the dwelling is located

A mobile home owned and occupied by G is insured on a Broad Form Homeowners policy with the Mobile Home Endorsement. In the event of a covered loss, all of the following property is covered under Coverage A of the policy, except:

The land on which the mobile home is located

Which person is not a covered resident under Homeowners policies?

The named insured's tenant

Homeowners policies would not cover which of the following losses?

Theft of building materials from the dwelling while it is under construction

All of the following perils are excluded by Homeowners policies, except:

Unintentional loss

Under the Subrogation condition of a Special Form Homeowners policy, the insured may:

Waive their rights of recovery prior to a loss

The insurer's duty to defend the insured, as provided by Section II of a Homeowners policy, ends:

When the damages awarded against the insured exhaust the personal liability limit

Vandalism and malicious mischief losses are excluded under a Homeowners policy:

When the property has been vacant for 65 consecutive days