Property Insurance

What type of policy insures a home and contents against the perils in the HO-1 and other additional perils, such as falling objects, weight of ice, snow, sleet, and damage from water or steam discharge? A. Basic policy B. Broad form policy (Correct) C. Comprehensive form policy D. Special form policy

Homeowners 1 (HO-1) is known as the basic policy and insures a home and its contents against listed perils. The correct answer is asking for the type of policy that covers against additional perils, not option A. Homeowners 3 (HO-3) is known as the special form policy and insures a home for all risks of physical loss except listed exclusions. And homeowners 5 (HO-5) is known as the comprehensive form policy, which covers personal possessions for all perils except those that are excluded. Options C and D are both incorrect. The correct answer is option B. Homeowners 2 (HO-2), known as the broad form policy, insures a home and contents against the "basic" perils and other additional perils, such as falling objects, weight of ice, snow, sleet, and damage from water or steam discharge.

Insurers are required to offer premium discounts for ______. A. Catastrophic insurance B. Flood insurance C. Preventive measures taken against hurricanes and storms (Correct) D. Some coins and collectibles coverage

Insurers are required to offer premium discounts for some hurricane and storm protections, such as shutters, or hurricane-resistant laminated glass.

Carol owns her own business in NYC and has 50 employees. She is in need of broad coverage that bundles property and liability insurance together. What type of coverage might she want to consider? A. A business owner policy package (Correct) B. An umbrella policy C. A business owner package D. Universal

A business owner package provides broad coverage that bundles property and liability insurance together and is intended for small businesses with 100 or fewer employees.

What is a characteristic of an independent agent? A. Is an agent for one company B. Is a direct writer C. Is an employee of the insurance company D. Represents more than one company (Correct)

An independent agent will represent multiple companies. This is similar to how a mortgage broker works with multiple lenders.

Which type of insurance policy would probably be the best bet cost-wise for property owners and renters? A. Monoline B. Multiple C. Universal D. Package (Correct)

By bundling several policies into one, cost savings can be realized.

What type of property insurance is available for rental and income properties, businesses, and commercial enterprises? A. Business broker insurance B. Commercial general liability (Correct) C. Market and business D. Trade and commerce

Commercial liability insurance provides insurance for business, rental, and commercial enterprises.

Personal liability insurance covers incidents such as ______. A. A dinner guest twisting an ankle after falling down the stairs (Correct) B. A flooded basement from a leaky faucet C. Home exterior damage from a forest fire D. Roof damage from a hailstorm

Personal liability covers the person and not the structure of the home.

Under what policy name is Homeowners 4 (HO-4) known? A. Broad form policy B. Condominium unit owner policy C. Special form policy D. Tenants or cooperative owner policy (rental insurance)

Homeowners 4 (HO-4) is known as the tenants or cooperative owner policy or rental insurance, and it provides coverage for the loss of personal property. Homeowners 3 (HO-3) is the special form policy, which insures a home for all risks of physical loss except listed exclusions. Coverage for loss of contents is also covered for many of the same perils. Homeowners 2 (HO-2) is the broad form policy and insures a home and contents against the "basic" perils and other additional perils, such as falling objects, weight of ice, snow, sleet, and damage from water or steam discharge. Homeowners 6 (HO-6) is the condominium unit owner policy, which covers damage to the contents of the apartment, cooperative, or condominium and provides personal liability coverage for the insured when people are injured or suffer property damage in the insured's unit. Options A, B, and C are incorrect. Option D is the correct answer. Homeowners 4 (HO-4) is known as the tenants or cooperative owner policy (rental insurance). It provides coverage for the loss of personal property.

Property owners who cannot obtain insurance can contact a pool of all insurance companies that write fire insurance in New York. What is that called? A. New York Property Insurance Casualty Association B. New York Property Insurance Coverage Association C. New York Property Insurance Fire Association D. New York Property Insurance Underwriting Association (Correct)

Homeowners can obtain insurance from the New York Property Insurance Underwriting Association (NYPIUA), which is a pool of all insurance companies that write fire insurance in New York. Option D is the correct answer. NYPIUA offers fire and extended coverage, as well as coverage for vandalism and sprinkler leakage, to consumers who can't buy this type of insurance from regular insurance companies.

Marty just moved to Queens and is looking for a steller insurance broker. Which of the following is a characteristic of an insurance broker? One policy option Personalized service (Correct) Price is foremost Represents the insurance company

Insurance brokers offer personalized service similar to the way that mortgage brokers work with buyers/borrowers.

If the property owner selects an insurance broker, what service(s) is she likely to find? A. No power to issue policies or bind insurance companies to issue policies B. Online service only C. Premiums are higher than if the property owner paid them directly to the insurance company D. Representation

Insurance brokers represent the customer rather than an individual insurance agency.

In New York, after an insurance policy has been in place for at least 60 days, how long must an insurance company wait before cancelling the policy or refusing to renew it (providing payments are kept up to date)? A. Five years B. One year C. Two years D. Three years (Correct)

Insurance companies may not cancel or refuse to renew for three years after signing up a new policyholder, provided the policy has been in place for at least 60 days.

Property insurance includes protection against ______. A. Bodily injuries sustained on the property to a person, or damage done to another person's property because of the owner's negligence B. Fire, windstorms, hail, tornadoes, vandalism, and other physical damage (Correct) C. Hospital and physician expenses incurred as a result of an injury of a guest on the property D. Loss of personal property up to a specified value

Property insurance includes protection against fire, windstorm, hail, tornadoes, vandalism, and other physical damage.

What is included in most homeowner and tenant policies? A. Catastrophic coverage B. Flood coverage C. Property, liability, theft, and medical payment coverage (Correct) D. Universal coverage

Property, liability, theft, and medical payment coverage are part of most homeowners insurance package policies.