Chapter 6: Homeowners (HO) Policies

Bob's HO-3 Homeowners (HO) Policy covers the dwelling for $100,000. He suffers a flood loss in the amount of $7,000. The policy includes a $250 deductible. How much will the policy pay? 1. $0 2. $7,000 3. $7,250 4. $6,750

1. $0

A married couple owns a single family dwelling covered by a Homeowners (HO) Policy Special Form with replacement cost coverage equaling $150,000. If their detached garage is a total loss, how much will the Homeowners (HO) Policy pay? 1. $15,000 2. $10,000 3. The policy will pay whatever amount is needed to rebuild the garage. 4. $20,000

1. $15,000

Which one of the following is eligible property for a Homeowners (HO) Policy? 1. A duplex 2. A six family dwelling 3. A two family dwelling with the ground floor rented for a beauty parlor 4. A single family dwelling with the third floor rented to six borders

1. A duplex

Coverage D in a Homeowners (HO) Policy is comprised of which of the following? 1. Additional living expenses and fair rental value 2. Fair rental value and collapse 3. Loss of use and loss of tenant 4. Ordinance and law

1. Additional living expenses and fair rental value

What Homeowners (HO) Policy form provides all risk coverage to cover a detached garage? 1. HO-3 2. HO-2 3. HO-4 4. HO-6

1. HO-3

H is reading through his HO-4 policy and keeps seeing the language "you" and "your." Under Homeowners (HO) Policy definitions, "you" and "your" refers to: 1. the named insured and the spouse of the named insured who lives at the same address of the insured 2. The named insured and any legal spouse 3. the named insured and the spouse of the named insured who lives at a separate address 4. the named insured

1. The named insured and the spouse of the named insured who lives at the same address of the insured

J owns an antique, historic home that has a custom, priceless stained glass window that was created by Tiffany & Co. One day, J's neighbor's daughter is practicing her fast pitch softball fastball in the back yard and the ball slips out of her hand goes right through the stained glass window. Which of the following loss valuation will be applied for the stained glass window under an HO-08 form? 1. Replacement Cost 2. Functional Replacement Cost 3. ACV 4. Salvage Value

2. Functional replacement cost

Each of the following is covered by Section I of a Homeowners (HO) Policy, EXCEPT: 1. Loss caused by burglary 2. Loss caused by a guest injuring themselves on the property 3. Loss caused by fire 4. Loss caused by windstorm

2. Loss caused by a guest injuring themselves on the property

A Homeowners (HO) Policy provides indirect loss coverage in which of the following coverage areas? 1. Other structures 2. Loss of use 3. Personal Property 4. Dwelling

2. Loss of use

Which of the following losses is not covered by a Homeowners (HO) Policy written on the Broad Cause of Loss form? 1. Broad form peril losses 2. Fire damage to an insured's home 3. Back up from a sump pump 4. Bodily injury to a visitor on the insured premises

3. Back up from a sump pump

An HO-3 policy is an open peril Homeowners (HO) Policy. However, the personal property of an insured is covered on a broad form peril basis. All of the following losses will be covered by this policy, EXCEPT: 1. Wind uprooting a tree that causes damage to the garage 2. Loss due to the freezing of pipes as long as heat was maintained in the dwelling 3. Damage to an insured's vehicle caused by fire 4. Explosion damage to an outboard motor located in a utility shed on the premises

3. Damage to an insured's vehicle caused by fire

Leslie has a Homeowners (HO) Policy that covers both her home and her belongings inside the home. A windstorm rips a hole in the roof of her home. Leslie tells the insurance company right away, but does nothing else. Three nights later, rain coming in from the hole damages her furniture. Which of the following would be true of Leslie's claim of loss? 1. Her loss of the furniture would be covered, but her loss from the roof would not be. 2. Neither her loss from the roof nor her loss of the furniture would be covered. 3. Her loss from the roof would be covered, but her loss of the furniture would not be. 4. Both her loss from the roof and her loss of the furniture would be covered .

3. Her loss from the roof would be covered, but her loss of the furniture would not be

Which of these statements about Coverage C of the Homeowners (HO) Policy is correct? 1. There is no coverage for property being moved from the residence premises to a new principal residence 2. Property of boarders may be covered at the insured's request 3. Property normally kept at a residence other than the residence premises is covered for 10 % of the coverage C limit or $ 1000 , whichever is greater 4. It only covers the insured's personal property while it is at the residence premises

3. Property normally kept at a residence other than the residence premises is covered for 10% of the coverage C limit or $1,000, whichever is greater

In an Homeowners (HO) Policy, "we" and "us" refer to: 1. the insured and their employees 2. anyone named as an insured 3. the insurance company 4. the insured and their spouse

3. The insurance company

Which of the following would be true of a swimming pool on the premises of a residence that is insured under a Homeowners (HO) Policy? 1. The swimming pool would be covered under property coverage C. 2. The swimming pool would be covered under property coverage A. 3. The swimming pool would be covered under property coverage B. 4. The swimming pool would not be covered under the homeowner's policy .

3. The swimming pool would be covered under property coverage B

A Homeowners (HO) Policy does not provide coverage for damage to motorized vehicles unless they are not required to be registered for use on public roads and are: 1. Separately described and specifically insured 2. Considered to require excess insurance 3. Used solely to service an insured's residence 4. Used principally by a licensed driver

3. Used solely to service an insured's residence

Bob is covered by an unendorsed HO-3 Homeowners (HO) Policy and is insured to value. The covered dwelling has a replacement value of $200,000 and Bob carries $160,000 of coverage. If a fire causes $27,000 of damage, how much will the policy pay? 1. $133,000 2. 80% of $27,000 3. $27,000 4. $27,000 less any deductible

4. $27,000 less any deductible

Which type of coverage is not provided under an unendorsed Homeowners (HO) Policy HO-06 condo owners form? 1. Personal Property (Coverage C) 2. Personal Liability (Coverage E) 3. Dwelling insurance (Coverage A) 4. Appurtenant Structures (Coverage B)

4. Appurtenant Structures (Coverage B)

Coverage to private structures on the residence premises that are not connected to the main dwelling are covered under which subsection of Coverages under a Homeowners (HO) Policy? 1. Coverage A 2. Coverage D 3. Coverage E 4. Coverage B

4. Coverage B

Contents coverage on all Homeowners (HO) Policy forms are settled at Actual Cash Value. What is needed to eliminate depreciation for losses to contents? 1. Agreed Value endorsement 2. Scheduled Personal Property endorsement 3. Functional Replacement Cost endorsement 4. Replacement Cost endorsement

4. Replacement cost endorsement