CH. 13 (DP & Homeowner)

A homeowner's water pipe cracks due to freezing and begins to leak. The leakage damages the floor before flowing into the basement and causing further damage. The insured's HO-3 will cover: Select one: a.both the damage caused by the water and the cost of repairing the pipe. b.the damage caused but not the cost of repairing the pipe. c.the cost of repairing the leaky pipe but not the resulting damage. d.nothing because HO policies never cover water damage.

the damage caused but not the cost of repairing the pipe (Special for damages to structure, but Broad for personal property aka the pipes)

which of the following residents would be considered an insured under the HO policy?

the insured's child

The HO's Personal Property coverage applies to: Select one: a.the insured's dog. b.property owned by an unrelated tenant. c.the insured's automobile. d.the insured's clothing.

the insured's clothing. (Everything else isn't covered)

while on vacation an insured suffered a fire loss to his personal property which he had taken with him not he vacation. His DP-3 will cover this loss in which manner?

the loss will not be covered

While at the lake, my boat could be destroyed by fire, striking another boat, lightning, sinking, etc. If the boat is destroyed, my HO Insurer will pay a maximum of: Select one: a.the policy limit. b.$250. c.$500. d.$1,000.

the policy limit (TRICK QUESTION! Policy limits is $1,500 for watercraft. So just select policy limit)

The most a HO policy will pay for a liability slip and fall claim under Section II of the policy is: Select one: a.$15,000 b.$25,000 c.$40,000 d.the policy's limit of liability.

the policy's limit of liability (This is an accident so it should be fully covered, till limit)

A mobile Home policy covers a detached garage: Select one: a.only by a rider, endorsement, separate policy b.to 20% of A c.to 10% of A (with at least $2,000 coverage) d.with no limit

to 10% of A (with at least $2,000 coverage)

A mobile home policy covers the insured's personal property:

to 40% of A

Section I of the HO-3 covers trees, shrubs, and plants for loss caused by each of the following EXCEPT: Select one: a.Fire b.Explosion c.Wind d.Lightning

wind

The insured's 14 year-old child intentionally damaged the neighbor's house. The Additional Coverages section of the HO policy will pay:

$0

The insured's 15 year-old intentionally vandalized the neighbor's car. Under the Damage to Property of Others coverage, the HO will pay:

$0

In the evenings, Jack runs a baby-sitting business in his home. Jack charges $380 per hour for babysitting kids. If a child is injured, the HO policy's Section II coverage limit for such a claim is:

$0 (ONLY has coverage if there's an endorsement/rider)

Four trees valued at $200, $500, $700 and $800 were destroyed by fire. The HO-5 will cover this loss to a total of: Select one: a.$1,200. b.$1,250. c.$1,700. d.$2,000.

$1,700. ($500 for any one tree, up to 5% of limit of A So, we get $200 for the $200 tree, $500 apiece for the last 3 threes, for a total of $1,700.)

The insured's 15 year-old child negligently rode her bike into the neighbor's house causing $1,800 damage. The HO policy will pay:

$1,800

In the evening, Nancy runs a baby-sitting service in her home. she cheerfully babysits neighborhood kids because she loves the kiddies. she never charges for this service. if a child is injured in her home, nancy's HO policy's Section II coverage limit for such a claim is:

$100,000 (Because this is a personal activity, not a business activity, Nancy's HO policy will pay up to $100,000.)

If the insured's dog bites a jogger, the HO will pay a maximum of defense costs plus: Select one: a.$1,000 b.$100,000 c.$101,000 d.$250,000

$100,000 (The HO policy will include the Med Pay in the limit of liability when paying the victim. So, the injured person may collect only $100,000, not $101,000. However, it will pay the Insured's defense costs (supplementary) without limit.)

While playing with fireworks, Smith's 16-year-old child negligently destroyed the neighbor's $250,000 home. Smith's homeowner's policy will cover the liability up to:

$100,000 (Liability limit is $100k)

Molly's HO-00-03 has a $250 deductible and $1,500 limit for theft of jewelry. Molly's jewelry is also covered by a Scheduled Personal Property Endorsement (that is, an Inland Marine floater) with a $2,500 limit of liability. If $4,000 worth of Molly's jewelry is stolen, she will recover a maximum of how much?

$2,500 (She's only covered for one of the policy, which ever one is greater)

to be eligible for a mobile home endorsement, the dwelling must be at least:

10 ft wide and 40 ft long

With a mobile home endorsement, personal property is covered to:

40% of A (only 40% for mobile homes)

a dwelling policy may be used if the structure has a maximum of how many boarders

5

the ho-2 provides vandalism coverage for a maximum of how many days after the beginning of the vacancy?

60 days

vandalism damage to the exterior walls of a home won't be covered if the home has me the policy's definition of vacancy which is how many days?

60 days (remember! Vacancy is after 60 days and no one or nothing is there)

the Ho's personal liability section covers:

Damage to the property of other persons.

A DP-3 covers:

Fire set by arsonists.

Of the following, which provides the broadest coverage for the dwelling and contents?

HO-3

which policy provides special coverage on the dwelling and broad form coverage on personal property?

HO-3

The HO policy which provides the best coverage for an owner who occupies a single family home is the:

HO-5

Under a pair of Set provision:

Loss of one will not be loss of all

Section II of the HO policy covers:

Medical Payments

a mobile home policy: Select one: a.will pay $500 of the cost of transporting the mobile home to a new permanent location. b.May be used if the mobile home has at least 300 square feet. c.Provides Replacement Cost coverage. d.May be used if the mobile home has at least 200 square feet.

Provides Replacement Cost coverage. (This is a rider, so it adds coverages)

The HO-3 covers which of the following: Select one: a.Wear and tear. b.Vandalism if the structure has been vacant for 60 consecutive days. c.Damage cause by birds. d.Theft while the dwelling is under construction.

Vandalism if the structure has been vacant for 60 consecutive days. (DOESN'T cover theft while under construction)

which of the following boats owned by the insured would be covered under the insured's homeowners policy? Select one: a.a boat with a 20 horsepower outboard engine b.28 foot sailboat c.a boat with a 50 horsepower outboard engine d.a boat with a 50 horsepower inboard engine

a boat with 20 horsepower outboard engine (DOESN'T cover: - outboard engine exceeding 25 horsepower - ANY inboard engine - sailboats 26 feet +)

which of the following is an insured under Section II of the HO policy

a resident minor in the insured's care, custody, and control

Section II of the HO policy provides liability coverage for:

accidents

section II of a homeowner policy provides coverage for:

acts of the homeowner's dog

section I of the HO covers each of these EXCEPT: a. Additional Living Expenses b. Bodily Injury Liability c. Unscheduled personal property d. Appurtenant structures

bodily injury liability

The HO-5 policy provides

both Coverage E (Personal Liability) and Coverage F (Medical Payments)

The HO forms include a special limit for each of the following except: Select one: a.Clothes b.Jewelry c.Boats d.Securities

clothes (Just think clothes aren't as valuable)

if the insured's dog bites a jogger, the HO's bodily Injury Liability will pay for

defense costs if the jogger sues

the HO-3 may cover which of the following? Select one: a.Dwelling under construction b.Theft from a dwelling under construction c.Both A and B d.None of the above

dwelling under construction (DOESN"T cover theft DURING construction

A-DP-1 (dwelling policy-1) covers each of the following EXCEPT:

earth movement

An HO-3 covers each of these EXCEPT: a. Flooding. b. Freezing. c. Vandalism. d. Falling objects.

flooding

If the insured is injured in her home, she will be compensated under:

her health insurance policy, but not under the HO at all

The wind blows the Insured's tree over, resulting in damage to the Insured's home and car. The Insured's HO-3 will cover the damage to the Insured's: Select one: a.tree b.home c.car d.All of the above

home (Special covers wind, broad doesn't. Under HO-3, Special for structures aka HOME Broad for personal aka car and tree)

Section II of the HO will cover each of these EXCEPT: a. A tenant who slips on the driveway. b. A person injured by the Insured's fireworks display. c. The insured's accidental fire damage to a neighbor's living room. d. Injury to the insured's employee covered by Worker Compensation.

injury to the insured's employee covered by worker compensation

which is true regarding the HO-8?

it was created because replacement cost is too costly for some homes.

a mobile home policy:

may provide Replacement Cost coverage for the structure if it is insured to 80% of replacement cost.

In comparing and HO-2 and HO-3, the HO-3 has:

none of the above

The HO-3 covers which of the following? a. Smoke from a smudging factory b. Damage caused by an animal kept by the Insured c. Damage caused by birds d. None of the above

none of the above

Under a Homeowner policy, abandonment is:

not permitted

After a burglary in a home covered by a HO-00-03 (HO-3), the insured must:

notify the policy

The HO's Medical Payments pays: Select one: a.only after the limit of liability is reached. b.in addition to the limits of liability. c.only up to the limit of liability. d.after the deductible is satisfied.

only up to the limit of liability

a homeowner policy requires notice of a loss to be given to each of the following EXCEPT: a. the insurer. b. the police if a crime is involved. c. other insureds. d. the credit card company if a credit card is stolen.

other insureds

Which HO coverage does NOT have a deductible?

personal liability

the liability coverage under a HO is identical to the coverage under the:

personal liability coverage

Under section II of the HO policy. Med Pay will cover a claim:

regardless of liability

For the dwelling, Mobile Home policies cover loss settlement: Select one: a.on a Replacement Cost basis. b.on a stated or agreed value basis. c.on an ACV basis. d.without a deductible.

replacement cost basis

the HO forms have a special limit (aka inside limit) for which of the following? Select one: a.Couch b.TV c.Silverware d.All of the above

silverware (check sample policy pg. 13-26)

which homeowner policy is used when the cost to rebuild the home would cost more than the market value of the home?

Ho-8

The HO's Supplementary (additional) payments pays: Select one: a.after the deductible is satisfied. b.only up to the limit of liability. c.only after the limit of liability is reached. d.in addition to the limits of liability.

In addition to the limits of liability (Think Fire dept.!)

Under the pair or set rule:

In no event will the loss of one item in the pair or set be considered to be the loss of all items in the pair or set.