Personal Lines-Homeowners Policy

Theft coverage is not included if it caused by the following.

1. Committed by an "insured," 2. To a dwelling under construction or of materials and supplies for use in the construction until the dwelling is finished and occupied, 3. From that part of a "residence premises" rented by an "insured" to someone other than another "insured" (The policy does not cover the renter's property.), 4. That occurs off the "residence premises" from: a. Trailers, semi-trailers and campers; b. Watercraft of all types and their furnishings, equipment and outboard engines or motors; c. Property while at any other residence owned by, rented to, or occupied by an "insured" except while an "insured" is temporarily living there.

Coverage D (Loss of Use) for HO-4 is ___% of coverage C.

20%

Theft Coverage: Property of an "insured" who is a student is covered while at the residence the student occupies to attend school as long as the student has been there at any time during the ______ days immediately before the loss.

90 days

Additional coverage to Personal Liability (Coverage E) and Medical Payments to Others (Coverage F): The insurer will pay up to $_____ for the insured's share of loss assessment charged as owner or tenant of the "residence premises" by an association of property owners, when the assessment is made as a result of "bodily injury" or "property damage" not excluded from coverage under Section II - Exclusions.

$1,000

Additional coverage to Personal Liability (Coverage E) and Medical Payments to Others (Coverage F): The insurer will pay, at replacement cost, up to $_____per "occurrence" for "property damage" to property of others caused by an "insured."

$1,000

The HO-6 uses the HO-2 Broad Form Perils. The HO-6 automatically has $_______of Coverage A for Loss Assessments and Coverage C (Personal Property) and Coverage D (Loss of Use).

$1,000

The insurer will pay up to $______ for the insured's share of loss assessment charged during the policy period against the insured as owner or tenant of the "residence premises" by a corporation or association of property owners.

$1,000

The minimum liability limit for Coverage E (Personal Liability) is how much?

$100,000

Landlord's Furnishings The insurer will pay up to $_______ for the insured's appliances, carpet and other furnishings in each apartment on the residence premises regularly held for rental.

$2,500

Deductible applies to Section I property losses only on a per occurrence basis. The minimum deductible is $____.

$250

The policy will pay up to $__________ for losses to grave makers and on or off the residences premises from Perils Insured Against in the policy.

$5,000

Debris removal: The HO policies will pay up to $_______, for the removal from the "residence premises"

$500

The policy will pay up to $_______ for the insured's liability assumed by contract or agreement for the department charges incurred when the fire department is called to save or protect covered property from a peril insured against.

$500

Coverage E and F do not apply to any "motor vehicle liability" if, at the time and place of an "occurrence" (accident), the "motor vehicle" is registered for use on public roads. Is being used for....

(1) Operated in, or practicing for, any prearranged or organized race, speed contest or other competition; (2) Rented to others; (3) Used to carry persons or cargo for a charge; or (4 ) Used for any "business" purpose except for a motorized golf cart while on a golfing facility.

HO-6 cover property of owners of condos. Coverage A is $_________. Coverage C is written in an amount as needed and Coverage D is ____% of Coverage C.

-$1000 -40%

Coverage D (loss of use) for HO-2, HO-3, HO-5 has a ____% of Coverage A limit. The HO-8 only provides ___% for coverage D (loss of use)

-20% for HO-2, HO-3,HO-5 -10% for HO-8

The policy pays as additional coverage up to __% of the liability limit for the dwelling for the trees, shrubs, plants and lawns. The liability limit cannot exceed $_____ for any one tree, shrub or plant.

-5% -$500

What are some exclusions on Coverage A and Coverage B for HO-policies.

1. Farms 2.Dwellings that are not owner occupied 3.Glass breakage when the dwelling is VANCANT for 60 days immediately before the loss 4.Dwellings used in whole or in part for business purposes. 5.Dwellings rented to anyone other than a tenant. (The exception is for private garage purposes.)

The policy pays for trees, shrubs, plant or lawns on the residence premises fro losses caused by what?

1. Lightning or Fire 2. Explosion 3. Riot 4. Aircraft 5. Vandalism 6.Theft

Loss Settlement: Property Coverage C losses of the following types are settled at Actual Cash Value (ACV) at the time of loss but not more than the amount required to repair or replace as follows.

1. Personal property; 2. Awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings; 3. Structures that are not buildings; 4. Grave markers, including mausoleums. Buildings covered under Coverage A or B are settled at replacement cost without deduction for depreciation. This settlement is conditioned upon the 80% coinsurance requirement

For Coverage C Homeowners policies do not cover what?

1.Animals, Birds or Fish. 2.Aircraft 3.Hovercraft 4.property of roomersboarders and other tenants 5.Property rented or held for rental to others off the "residence premises" 6.Loses caused by Water or steam 7.credit cards and such

The Ordinance or Law Coverage may provide up to ___% of Part A to pay for increased cost due to construction requirements based on an ordinance or law.

10%

Coverage B (Other structures) for HO-2, HO-3, HO-5, HO-8 is ___% of Coverage A limit.

10% Example: If Coverage A is $200,000 then Coverage B will be $20,000. This amount is the max no matter how many structures.

Coverage C: Property usually located at an "insured residence" other than the "residence premises" is covered for up to ___percent of coverage C or $________ whichever is the greater amount.

10% and $1,000

Appraisal: The two (2) appraisers will choose an umpire. If the appraisers cannot agree upon an umpire within _____ days, either party may request that the choice be made by a judge or a court of record in the state where the "residence premises" is located.

15 days

Appraisal: If the insured and the insurance company fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent and impartial appraiser within _______ days after receiving a written request from the other.

20 days

No legal action (lawsuit) can be brought against the issuer of the policy unless there has been full compliance with all of the terms under Section I of this policy and the action is started within _____ years after the date of loss.

3 years

Coverage F (Medical Payments to Others) covers the treatment for bodily injuries (regardless of fault) to persons (other than an insured) injured from the insured's presumed liability. The insurer pays medical expenses incurred or medically ascertained within _____ years from the date of the accident. Medical expenses include payment for medical, surgical, dental, hospital and funeral services. The minimum coverage limit in the policy is $______ but larger amounts are available for an additional premium.

3 years/$1,000

If the insurer gives the insured written notice within ______ days after the insurer receives the insured's signed, sworn proof of loss; the insurer may repair or replace any part of the damaged property with material or property of like kind and quality.

30 days

The policy pays for property from the premises due to a covered endangering peril insured against for a period of no more than ____ days after the loss.

30 days

Coverage C (Personal Property) for HO-2, HO-3, HO-5, HO-8 is ____% of Coverage A limit.

50% Example: For example, if the Coverage A limit is $200,000, then the Coverage C limit is $100,000. For an additional premium, this amount can be increased by the use of an endorsement.

Liberalization Clause: If the insurer makes a change which broadens coverage under this edition of the policy without additional premium charge, that change will automatically apply to the insurance policy as of the date the change implemented in the insured's state, provided that this implementation date falls within ____ days prior to or during the policy period stated in the Declarations.

60 days

Property policies can be written for a period of up to a maximum of _____years in length

7 Years

One or more volcanic eruptions that occur within a ____ hour period will be considered as one volcanic eruption.

72 hour

Homeowner's policies require the insured to carry a minimum amount of coverage to be eligible for full payment of partial losses to the dwelling (residence premises) and other/appurtenant structures. The minimum coinsurance amount is ____% of the replacement value of the dwelling (Coverage A).

80% For example, if B has a dwelling with a $300,000 replacement cost, she must carry at least 80% of the value or $240,000. If she carries this amount, any partial losses up to $240,000 are fully covered. If the loss exceeds the amount carried, the difference is not paid. If B only decides to carry $200,000 and she suffers a $50,000 loss, how much would she be paid for the loss? To determine the amount B will be paid for her loss, you must divide $200,000 (amount carried) by $240,000 (the minimum amount he should be carrying). Your result will be a percentage of .83333. Multiply the loss ($50,000) by .83333 and your result will be $41,666.50. That is the amount paid for her loss. B should have carried at least $240,000 to receive the full $50,000.

The HO-5 is an "_________" (Open Perils) policy. Coverage A - C provides all risk of perils coverage. The form does cover "mysterious disappearance" under the theft peril.

All Risk of Perils

True or False: The HO-3 is an "______" (Open Perils) policy with specific perils exclusions for Coverage A and Coverage B. Coverage C is NOT an all risk of perils coverage. Coverage C is the Broad Form perils coverage which is the same as the HO-2.

All Risk of Perils

What are appurtenant structures?

Are structures that are fixed to the land such as an in-ground swimming pool.

The HO-4 uses the HO-2 Broad Form Perils. The HO-4 has only what coverage's?

Coverage C (Personal Property) and Coverage D (Loss of Use)

HO-2 Broad From is designed for whom?

Designed for single or dual family dwellings covering perils on a "NAMED PERILS" basis.

HO-3 Special Form is designed for whom?

Designed for single or dual family dwellings covering perils on an "ALL RISK" basis for Coverage A and Coverage B.

HO-5 Comprehensive Form is designed for whom?

Designed for single or dual family dwellings covering perils on an "ALL RISK" basis for Coverage A, Coverage B and Coverage C

HO-8 Modified Form is designed for whom?

Designed for single or dual family dwellings that do not qualify for an HO-2, HO-3 or HO-5 typically due to age or construction. Perils are covered on a SPECIFIC named basis.

HO-4 Contents Form is designed for whom?

Designed for tenants or renters providing perils coverage on a named basis for Coverage C losses.

HO-6 Unit Owners is designed for whom?

Designed to cover condominiums and owned apartments on a "NAMED PERILS" basis for Coverage A and Coverage C.

Coverage D loss of use helps out with what?

If a homeowner has to vacate the dwelling due to a covered peril, the insured will likely incur extra cost such as renting a temporary residence. this expense would be covered as a additional living expense.

The Homeowners policy is referred to as a ___________ insurance contract. This means that the policy includes both property and liability coverage with one premium covering all the risk listed on the contract.

Multiple-line

Is a payment under Coverage F considered an admission of guilt?

NO

The HO-2 is referred to as a ________ Policy. The polices cover specifically the perils named in the policy, and no other perils are covered. The policy pays for direct physical loss for Coverage A (Dwelling), Coverage B (Appurtenant and Other Structures), and Coverage C (Personal Property).

Named Perils

A waiver or change of a provision of the policy must be in writing by the insurer to be valid. The insurer's request for an appraisal or examination will not waive any of the insurer's rights. True or False.

True

Additional coverage to Personal Liability (Coverage E) and Medical Payments to Others (Coverage F): The insurer will pay expenses for first aid to others incurred by an "insured" for "bodily injury" covered under this policy. The insurer will not pay for first aid to an "insured." True or False

True

Coverage C for HO policies covers normal household or personal property that belongs to the insured residents of the dwelling. The policy covers personal property owned or used by an "insured" while it is anywhere in the world. True or False

True

Coverage E and F do not apply to any "aircraft liability" or hovercraft liability. True Or False.

True

Fire Department Service Charge True or False: The Insurer does not cover fire department service charges if the property is located within the limits of the city, municipally or protection district furnishing the fire department response. This coverage is additional insurance. No deductible applies to the coverage.

True

Homeowners Polices pay on an occurrence basis for each loss. True or false.

True

Homeowners insurance is property insurance that cover 1-4 family private OWNER-OCCUPIED dwelling. True or False.

True

Mysterious Disappearance is when the property has "disappeared," but the cause is not definable. For example, the property could have been misplaced or lost instead of stolen. The intent of the exemption is to reduce the possibility of fraud. True or False.

True

Regardless of the number of persons insured, the total limit of liability applies per occurrence. True or False

True

The HO-8 is the most basic Homeowners Policy and is designed for owner-occupied dwellings that do not meet the requirements for other HO Forms, usually due to age. This Form is also used to insure homes with unique designs such as old Victorian homes from the late 1800s. True or False.

True

Watercraft (boat) Liability covers the following

a. Boats in storage, b. Boats with inboard or inboard-outboard motors equal to or less than 50 hp. not owned by an insured, c. Boats with inboard or inboard-outboard motors with more than 50 hp. not owned by or rented to an insured, d. Boats with outboard motors equal to or less than 25 total horsepower, e. Boats with outboard motors with more than 25 total horsepower not owned by or rented to an insured, g. Sail boats less than 26 ft. or sailing vessels of more than 26 ft. not owned by or rented to an insured.

Watercraft Liability excludes coverage for any "watercraft liability" if, at the time of an "occurrence," the involved watercraft is being:

a. Operated in, or practicing for, any prearranged or organized race, speed contest or other competition; b. Rented to others; c. Used to carry persons or cargo for a charge; d. Used for any "business" purpose.