Homeowners- Section I. Property Coverage
Chapter: Homeowners - Section I: Property Coverage All of the following are true of Coverage B - Other Structures EXCEPT A It must be added by endorsement to a homeowners policy. B This coverage is not applicable on the HO-4 policy form. C The amount of coverage provided by Coverage B is an amount equal to 10% of Coverage A. D Land where the other structures are located is not covered.
A It must be added by endorsement to a homeowners policy. Correct! Homeowners policies automatically provide an amount of insurance in Coverage B that is equal to 10% of the amount written as Coverage A. This amount may be increased by endorsement.
Chapter: Homeowners - Section I: Property Coverage An insured has a standard HO-4 policy with a $30,000 limit of coverage for personal property. While he was traveling, a fire in his hotel destroys clothes and luggage with a replacement value of $10,000, and jewelry with a replacement value of $10,000. Disregarding any deductible, and assuming a depreciation of 20% has occurred in both properties, what amount is the insurer obligated to pay? A $11,000 B $16,000 C $20,000 D $30,000
B $16,000 Correct! This loss would be settled on an ACV basis: $20,000 total for the loss, minus $4,000 for depreciation. Remember, the limitation on loss of jewelry applies to the peril of theft only.
Chapter: Homeowners - Section I: Property Coverage An insured works outside the home. The insured's sister lives with him and cares for his 4 children. When his home is severely damaged by fire, they move into an apartment while repairs are being made. The largest apartment available in the area has 2 bedrooms, so the insured's sister stays at a motel while the repairs are made. How much will the HO-3 pay for their additional living expense? A The cost of renting an apartment, but not the cost of the motel room B The cost of renting an apartment, and 50% of the cost of the motel C Nothing D All of the expense up to the Coverage D limit
D All of the expense up to the Coverage D limit correct! Coverage D will pay the expenses incurred to maintain the same lifestyle as before the loss.
A neighbor's tree has fallen into the insured's. The insured's homeowners policy will NOT pay to remove the tree UNLESS A The damage is more than $1,000. B The neighbor has no homeowners insurance. C The tree has caused damage to the house. D The tree is blocking the driveway.
D The tree is blocking the driveway. Correct! An insured's homeowners policy will pay up to $1,000 to remove from premises if a neighbor's tree fell by a covered peril, or if the tree blocks a driveway or handicapped ramp, even if no damage to a covered structure has occurred.
Chapter: Homeowners - Section I: Property Coverage Which of the following is the type of property NOT covered by the homeowners policy? A Materials and supplies B Attached structures C Land on which the property is located D Dwellings
C Land on which the property is located Correct! HO policies do not cover land on which the property is located.
An insured works outside the home. The insured's sister lives with him and cares for his 4 children. When his home is severely damaged by fire, they move into an apartment while repairs are being made. The largest apartment available in the area has 2 bedrooms, so the insured's sister stays at a motel while the repairs are made. How much will the HO-3 pay for their additional living expense? A The cost of renting an apartment, but not the cost of the motel room B The cost of renting an apartment, and 50% of the cost of the motel C Nothing D All of the expense up to the Coverage D limit
D All of the expense up to the Coverage D limit correct! Coverage D will pay the expenses incurred to maintain the same lifestyle as before the loss.
Chapter: Homeowners - Section I: Property Coverage The amount an insurer will pay under Coverage D (Loss of Use) depends on A The amount of coverage on the dwelling. B How long a dwelling has been occupied. C If the dwelling is owner-occupied or rented out. D The length of time the dwelling is uninhabitable.
A The amount of coverage on the dwelling. Correct! Loss of use usually is limited to a percentage of the overall dwelling or personal property coverage (when dealing with HO-4 and HO-6).
Personal property coverage under a homeowners policy would cover A Property moved to a newly acquired residence after 60 days. B A pet that the insured is temporarily keeping for a friend. C The insured's camera if it is stolen while the insured is on vacation. D A neighbor's fence if damaged by the insured.
C The insured's camera if it is stolen while the insured is on vacation. Correct! Coverage C is provided on a worldwide basis.
An insured with a homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for A 5 days. B 30 days. C 60 days. D 90 days.
B 30 days. Correct! Removal coverage applies for 30 days when the property has been removed to be protected.
Chapter: Homeowners - Section I: Property Coverage An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay? A None B $500 C $1,000 D $1,200
C $1,000 correct! As an additional coverage, homeowners policies will pay up to $1,000 of a loss assessment.
How much is covered for debris removal under the HO property additional coverages? A Everything after a $200 deductible B Nothing, unless added by an endorsement C All reasonable costs D 90% of the total cost of clean-up
C All reasonable costs correct! If the debris was caused by a peril that is insured against, the reasonable cost of debris removal is paid by the insurer.
Which of the following losses would NOT be covered by a homeowner's policy? A A $550 utility trailer blown away by a tornado B A stolen silver tea set worth $2,000 C A $800 outboard motor destroyed by hail D A coin collection valued at $500 lost in a fire
D A coin collection valued at $500 lost in a fire correct! HO will pay up to $2,500 for silverware by theft; $1,500 for boats, motors, trailers; $1,500 for loss of trailers not used with boats; but no more than $200 for coins.
All of the following are special personal property limits under a homeowners policy EXCEPT A $2,500 for theft of firearms. B $500 for business personal property on the insured premises. C $1,500 for securities, accounts, deeds, and evidences of debt. D $1,500 for trailers not used with watercraft.
B $500 for business personal property on the insured premises. correct! HO forms place a $2,500 limit for business personal property that applies on premises only. A limit of $500 applies to loss of business personal property while away from the premises.
Chapter: Homeowners - Section I: Property Coverage An insured with a homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for A 5 days. B 30 days. C 60 days. D 90 days.
B 30 days. Correct! Removal coverage applies for 30 days when the property has been removed to be protected.
The homeowners policy covers collapse caused by all of the following EXCEPT A Weight of too many people attending en event hosted in the house. B Foundation cracks. C Weight of snow. D Hidden insect or vermin damage.
B Foundation cracks. correct! Collapse must be caused by some sudden, unexpected reason. The foundation cracks would take years to cause collapse, meaning there would be plenty of time to find and repair them.
An insured has a standard HO-4 policy with a $30,000 limit of coverage for personal property. While he was traveling, a fire in his hotel destroys clothes and luggage with a replacement value of $10,000, and jewelry with a replacement value of $10,000. Disregarding any deductible, and assuming a depreciation of 20% has occurred in both properties, what amount is the insurer obligated to pay? A $11,000 B $16,000 C $20,000 D $30,000
B $16,000 Correct! This loss would be settled on an ACV basis: $20,000 total for the loss, minus $4,000 for depreciation. Remember, the limitation on loss of jewelry applies to the peril of theft only. Review ContentNext Question
Chapter: Homeowners - Section I: Property Coverage Which loss listed below would be fully covered by a homeowners policy? A $5,000 firearm collection stolen B $2,000 silver tea set stolen C $1,200 pedigreed golden retriever stolen D $24,000 bass boat destroyed in a tornado
B $2,000 silver tea set stolen Correct! Tea sets are covered with a special limit of $2,500 for the peril of theft; the firearm collection is covered for no more than $2,500 if stolen; boats are covered for no more than $1,500 for any peril the policy covers; the dog is not covered at all.
An insured with a homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for A 5 days. B 30 days. C 60 days. D 90 days.
B 30 days. correct! Removal coverage applies for 30 days when the property has been removed to be protected.
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is A 50% of the amount provided as Coverage B. B 50% of the amount provided as Coverage A. C Equal to the amount provided as Coverage B. D Equal to the amount provided as Coverage A.
B 50% of the amount provided as Coverage A. Correct! Under the HO forms, Coverage C is automatically provided as equal to 50% of the amount provided in Coverage A.
Question 6 of 12 Chapter: Homeowners - Section I: Property Coverage Which of the following losses would NOT be covered by a homeowner's policy? A A $800 outboard motor destroyed by hail B A coin collection valued at $500 lost in a fire C A $550 utility trailer blown away by a tornado D A stolen silver tea set worth $2,000
B A coin collection valued at $500 lost in a fire Correct! HO will pay up to $2,500 for silverware by theft; $1,500 for boats, motors, trailers; $1,500 for loss of trailers not used with boats; but no more than $200 for coins.
Chapter: Homeowners - Section I: Property Coverage A neighbor's tree has fallen into the insured's. The insured's homeowners policy will NOT pay to remove the tree UNLESS A The damage is more than $1,000. B The neighbor has no homeowners insurance. C The tree has caused damage to the house. D The tree is blocking the driveway.
D The tree is blocking the driveway. Correct! An insured's homeowners policy will pay up to $1,000 to remove from premises if a neighbor's tree fell by a covered peril, or if the tree blocks a driveway or handicapped ramp, even if no damage to a covered structure has occurred.
With regards to a homeowners policy, which coverage provides for indirect or consequential losses? A Coverage C B Coverage D C Coverage A D Coverage B
B Coverage D correct! Coverage D provide for loss of use, which is an indirect loss.
The homeowners policy covers collapse caused by all of the following EXCEPT A Weight of too many people attending en event hosted in the house. B Foundation cracks. C Weight of snow. D Hidden insect or vermin damage.
B Foundation cracks. Correct! Collapse must be caused by some sudden, unexpected reason. The foundation cracks would take years to cause collapse, meaning there would be plenty of time to find and repair them.
The additional living expense coverage on homeowners policies A Is intended to allow the family to stay in the least expensive accommodations available. B Is intended to allow the family to maintain its normal standard of living. C Automatically paid after any loss to the covered house. D Does not begin to pay until the family has been out of the house for at least 7 days.
B Is intended to allow the family to maintain its normal standard of living. Correct! The family is allowed to maintain its normal standard of living while waiting for its house to be repaired after a covered loss.
An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay? A None B $500 C $1,000 D $1,200
C $1,000 correct! As an additional coverage, homeowners policies will pay up to $1,000 of a loss assessment.
An insured suffers a windstorm loss in which the insured's driveway is blocked by 2 of the insured's trees and 2 of the neighbor's trees. The total amount of the removal adds up to the following: 3 trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss? A $1,500 B $1,400 C $1,000 D $900
C $1,000 correct! It is important to pay particular attention to coverages that have a maximum amount of coverage and an additional sublimit for one particular item. The most the policy will pay for this loss is $1,000.
Chapter: Homeowners - Section I: Property Coverage Under Additional Coverages for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services? A $500 B $1,000 C $5,000 D Fire department service charges are not allowed.
A $500 correct! If the insured calls the fire department to the insured premises to protect the insured property from a covered peril, the HO policy will pay up to $500 of the fire department service charge.
How much is covered for debris removal under the HO property additional coverages? A All reasonable costs B 90% of the total cost of clean-up C Everything after a $200 deductible D Nothing, unless added by an endorsement
A All reasonable costs Correct! If the debris was caused by a peril that is insured against, the reasonable cost of debris removal is paid by the insurer.
Homeowners policies provide coverage for A The land under the residence. B Property of tenants, roomers, or boarders not related to any insured. C Business property while on the residence premises. D Losses caused by off-premises power failure.
C Business property while on the residence premises. Correct! Your contents coverage will cover up to a $2,500 for loss of business property on premises.
A grave marker was damaged by vandals. It would cost $3,000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay? A $1,000 B $3,000 C $0 D $500
B$3,000 Correct! Homeowners 2000 policy will pay up to $5,000 for grave markers, including mausoleums, on or away from the premises for loss caused by a peril insured against under Coverage C.
Chapter: Homeowners - Section I: Property Coverage An insured suffers a windstorm loss in which the insured's driveway is blocked by 2 of the insured's trees and 2 of the neighbor's trees. The total amount of the removal adds up to the following: 3 trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss? A $1,500 B $1,400 C $1,000 D $900
C $1,000 Correct! It is important to pay particular attention to coverages that have a maximum amount of coverage and an additional sublimit for one particular item. The most the policy will pay for this loss is $1,000.
Chapter: Homeowners - Section I: Property Coverage A grave marker was damaged by vandals. It would cost $3,000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay? A $500 B $1,000 C $3,000 D $0
C $3,000 correct! Homeowners 2000 policy will pay up to $5,000 for grave markers, including mausoleums, on or away from the premises for loss caused by a peril insured against under Coverage C.
All of the following are special personal property limits under a homeowners policy EXCEPT A $1,500 for trailers not used with watercraft. B $2,500 for theft of firearms. C $500 for business personal property on the insured premises. D $1,500 for securities, accounts, deeds, and evidences of debt.
C $500 for business personal property on the insured premises. Correct! HO forms place a $2,500 limit for business personal property that applies on premises only. A limit of $500 applies to loss of business personal property while away from the premises.
An insured works outside the home. The insured's sister lives with him and cares for his 4 children. When his home is severely damaged by fire, they move into an apartment while repairs are being made. The largest apartment available in the area has 2 bedrooms, so the insured's sister stays at a motel while the repairs are made. How much will the HO-3 pay for their additional living expense? A The cost of renting an apartment, and 50% of the cost of the motel B Nothing C All of the expense up to the Coverage D limit D The cost of renting an apartment, but not the cost of the motel room
C All of the expense up to the Coverage D limit Correct! Coverage D will pay the expenses incurred to maintain the same lifestyle as before the loss.
Chapter: Homeowners - Section I: Property Coverage Personal property coverage under a homeowners policy would cover A Property moved to a newly acquired residence after 60 days. B A pet that the insured is temporarily keeping for a friend. C The insured's camera if it is stolen while the insured is on vacation. D A neighbor's fence if damaged by the insured.
C The insured's camera if it is stolen while the insured is on vacation. Correct! Coverage C is provided on a worldwide basis.
Under Additional Coverages for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services? A $500 B $1,000 C $5,000 D Fire department service charges are not allowed.
A $500 Correct! If the insured calls the fire department to the insured premises to protect the insured property from a covered peril, the HO policy will pay up to $500 of the fire department service charge.
Chapter: Homeowners - Section I: Property Coverage Homeowners policies provide coverage for A Property of tenants, roomers, or boarders not related to any insured. B Business property while on the residence premises. C Losses caused by off-premises power failure. D The land under the residence.
B Business property while on the residence premises. correct! Your contents coverage will cover up to a $2,500 for loss of business property on premises.
Which of the following is the type of property NOT covered by the homeowners policy? A Materials and supplies B Attached structures C Land on which the property is located D Dwellings
C Land on which the property is located Correct! HO policies do not cover land on which the property is located.
Personal property coverage under a homeowners policy would cover A Property moved to a newly acquired residence after 60 days. B A pet that the insured is temporarily keeping for a friend. C The insured's camera if it is stolen while the insured is on vacation. D A neighbor's fence if damaged by the insured.
Correct! Coverage C is provided on a worldwide basis. correct! HO policies do not cover land on which the property is located.
How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card? A $100 B $500 C $1,000 D $5,000
B $500 Correct! $500 is provided automatically, and may be increased by endorsement.
Which loss listed below would be fully covered by a homeowners policy? A $2,000 silver tea set stolen B $1,200 pedigreed golden retriever stolen C $24,000 bass boat destroyed in a tornado D $5,000 firearm collection stolen
A $2,000 silver tea set stolen Correct! Tea sets are covered with a special limit of $2,500 for the peril of theft; the firearm collection is covered for no more than $2,500 if stolen; boats are covered for no more than $1,500 for any peril the policy covers; the dog is not covered at all.
Which loss listed below would be fully covered by a homeowners policy? A $2,000 silver tea set stolen B $1,200 pedigreed golden retriever stolen C $24,000 bass boat destroyed in a tornado D $5,000 firearm collection stolen
A $2,000 silver tea set stolen correct! Tea sets are covered with a special limit of $2,500 for the peril of theft; the firearm collection is covered for no more than $2,500 if stolen; boats are covered for no more than $1,500 for any peril the policy covers; the dog is not covered at all.
Under Additional Coverages for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services? A $500 B $1,000 C $5,000 D Fire department service charges are not allowed.
A $500 correct! If the insured calls the fire department to the insured premises to protect the insured property from a covered peril, the HO policy will pay up to $500 of the fire department service charge.
The amount an insurer will pay under Coverage D (Loss of Use) depends on A The amount of coverage on the dwelling. B How long a dwelling has been occupied. C If the dwelling is owner-occupied or rented out. D The length of time the dwelling is uninhabitable.
A The amount of coverage on the dwelling. Correct! Loss of use usually is limited to a percentage of the overall dwelling or personal property coverage (when dealing with HO-4 and HO-6).
Chapter: Homeowners - Section I: Property Coverage How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card? A $100 B $500 C $1,000 D $5,000
B $500 correct! $500 is provided automatically, and may be increased by endorsement.
Which of the following losses would NOT be covered by a homeowner's policy? A A $800 outboard motor destroyed by hail B A coin collection valued at $500 lost in a fire C A $550 utility trailer blown away by a tornado D A stolen silver tea set worth $2,000
B A coin collection valued at $500 lost in a fire Correct! HO will pay up to $2,500 for silverware by theft; $1,500 for boats, motors, trailers; $1,500 for loss of trailers not used with boats; but no more than $200 for coins.
The purpose of the California residential property disclosure statement includes all of the following EXCEPT A Identifies the form of dwelling coverage you have purchased or selected. B Contains only a general description of coverages. C Becomes a part of your residential property insurance policy. D Describes the principal forms of insurance coverage in California for residential dwellings.
B Contains only a general description of coverages. correct! The disclosure statement describes the principal forms of insurance coverage in California for residential dwellings. It also identifies the form of dwelling coverage you have purchased or selected. This disclosure form contains only a general description of coverages and is NOT part of your residential property insurance policy.
With regards to a homeowners policy, which coverage provides for indirect or consequential losses? A Coverage C B Coverage D C Coverage A D Coverage B
B Coverage D Correct! Coverage D provide for loss of use, which is an indirect loss.
Chapter: Homeowners - Section I: Property Coverage With regards to a homeowners policy, which coverage provides for indirect or consequential losses? A Coverage C B Coverage D C Coverage A D Coverage B
B Coverage D correct! Coverage D provide for loss of use, which is an indirect loss.
An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay? A None B $500 C $1,000 D $1,200
C $1,000 Correct! As an additional coverage, homeowners policies will pay up to $1,000 of a loss assessment.
An insured suffers a windstorm loss in which the insured's driveway is blocked by 2 of the insured's trees and 2 of the neighbor's trees. The total amount of the removal adds up to the following: 3 trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss? A $1,500 B $1,400 C $1,000 D $900
C $1,000 Correct! It is important to pay particular attention to coverages that have a maximum amount of coverage and an additional sublimit for one particular item. The most the policy will pay for this loss is $1,000.
Chapter: Homeowners - Section I: Property Coverage All of the following are special personal property limits under a homeowners policy EXCEPT A $1,500 for trailers not used with watercraft. B $2,500 for theft of firearms. C $500 for business personal property on the insured premises. D $1,500 for securities, accounts, deeds, and evidences of debt.
C $500 for business personal property on the insured premises. correct! HO forms place a $2,500 limit for business personal property that applies on premises only. A limit of $500 applies to loss of business personal property while away from the premises.
Chapter: Homeowners - Section I: Property Coverage How much is covered for debris removal under the HO property additional coverages? A Everything after a $200 deductible B Nothing, unless added by an endorsement C All reasonable costs D 90% of the total cost of clean-up
C All reasonable costs correct! If the debris was caused by a peril that is insured against, the reasonable cost of debris removal is paid by the insurer.
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is A Equal to the amount provided as Coverage B. B Equal to the amount provided as Coverage A. C 50% of the amount provided as Coverage B. D 50% of the amount provided as Coverage A.
D 50% of the amount provided as Coverage A. Correct! Under the HO forms, Coverage C is automatically provided as equal to 50% of the amount provided in Coverage A.
All of the following are true of Coverage B - Other Structures EXCEPT A This coverage is not applicable on the HO-4 policy form. B The amount of coverage provided by Coverage B is an amount equal to 10% of Coverage A. C Land where the other structures are located is not covered. D It must be added by endorsement to a homeowners policy.
D It must be added by endorsement to a homeowners policy. Correct! Homeowners policies automatically provide an amount of insurance in Coverage B that is equal to 10% of the amount written as Coverage A. This amount may be increased by endorsement.
