Homeowners Policies P1-5
Kathy normally spends $2,500 a month on food and housing expenses for herself and her family. While their house is being repaired after a covered loss, Kathy puts her family up in a nearby hotel and incurs $3,750 per month in expenses. How much, if anything, will Coverage D of Kathy's homeowners policy cover? $0 $1,250 per month $2,500 per month $3,750 per month
$1,250 per month
Clint buys a new boat for $7,000 but does not obtain a separate boatowners policy for it. What coverage, if any, will most likely be available for it under his HO 3? $3,500 (half of the purchase price) Full replacement cost coverage Actual cash value coverage $1,500 limit on the boat and any trailers, furnishings, equipment, and outboard motors
$1,500 limit on the boat and any trailers, furnishings, equipment, and outboard motors
Many homes on an island were badly damaged by a windstorm that left Jules' home unscathed. Officials prohibit all residents from entering the island for 10 days until debris has been cleared from the island's only access road. Jules incurs $1,600 in living expenses while awaiting his return home. He is covered under an H0-3 homeowners policy. What amount will he recover under the policy? $1,600 $500 $800 $0
$1,600
Charlie normally spends $2,500 a month on food and housing expenses for himself and his family. While their house is being repaired following a fire, Charlie incurs an additional $2,000 in living expenses, spending $4,500 per month in hotel and restaurant bills. How much, if anything, will Coverage D of Charlie's homeowners policy cover? $0 $4,500 per month $2,000 per month $2,500 per month
$2,000 per month
Tristan normally spends $3,000 a month on food and housing expenses for himself and his family. While their house is being repaired following a fire, he incurs $5,000 per month in hotel and restaurant bills. How much, if anything, will Coverage D of Tristan's homeowners policy cover? $3,000 per month $5,000 per month $2,000 per month Nothing
$2,000 per month
Marcel protects his home and personal property with an HO-3 Special Form homeowners policy. Burglars broke into his house and stole several items and $700 in cash. After appraising the loss, the insurer's adjuster determined that Marcel is entitled to what amount as reimbursement for the missing cash? $300 $200 $0 $700
$200
The burglars who broke into Landon's house stole several items. Which of these is not covered in full by his homeowners insurance policy because a sublimit applies to that type of property? Digital camera valued at $200 Flat screen TV valued at $500 Violin valued at $1,000 $750 in cash, kept in a cookie jar
$750 in cash, kept in a cookie jar
Asher's new home is insured by an HO 3. Which of the following is covered under "other structures"? A workshop from which Asher conducts his business The land on which Asher's home sits A large screened gazebo in Asher's backyard An attached garage
A large screened gazebo in Asher's backyard
The single-family home that Lillian and Wilmer own and occupy is insured with a homeowners policy. Which of the following items would NOT be covered under Coverage C-Personal Property of their policy? A wooden deck A shotgun in a gun rack Shoes in a closet A violin
A wooden deck
When a hurricane damages homes on South Padre Island, the state emergency management agency orders an evacuation of the entire island. Gilligan and Ginger's home is not damaged, but they are prevented from returning to their home. What kind of coverage will they have under Coverage D-loss of use on their HO 3? None, because their home is not damaged. Additional living expenses for their food bill only Additional living expenses for up to 2 weeks Additional living expenses for one day
Additional living expenses for up to 2 weeks
Bernard's homeowners insurance policy makes several references to an insured location. Which one of the following locations would not qualify as an insured location? Hotel room that Bernard occupies while on a vacation Bernard's office in a downtown building owned by his employer Cemetery plot that Bernard owns Basement of Bernard's home
Bernard's office in a downtown building owned by his employer
Four of the bedrooms in Gladys's six-bedroom house are rented to boarders. Gladys insures the home with an HO 3 policy. Which of the following boarders would have coverage for personal property under Gladys's policy? Ophelia, her former college roommate Meredith, her friend Bernard, her brother Forest, a visitor from another city
Bernard, her brother
According to the definition of a motor vehicle in Donnell's homeowners insurance policy, all of the following items he owns would be considered motor vehicles EXCEPT: Trailer pulled behind a lawn tractor Self-propelled snowblower Lawn tractor Bicycle
Bicycle
Rueben is out of town when a pipe bursts, damaging his home. Which of the following expenses related to this loss is not covered under his homeowner's policy? Bill for the water that escaped from the pipe Replacing the ruined sofa Repairing the warped paneling Cleaning the soaked carpet
Bill for the water that escaped from the pipe
Krista and her husband Wilton live in a suburban home that is insured under a Bluebonnet Insurance Company homeowners policy. The home is titled in Krista's name and she is the only person named as an insured on the policy's declarations. The declarations list Porcine Bank as mortgagee. When the homeowners policy uses the pronouns "we," or "us," it refers to Krista and Wilton Bluebonnet Insurance Company Krista only Porcine Bank
Bluebonnet Insurance Company
Herbert's house sustained tornado damage. Because Coverage A of his homeowners policy covers dwelling property at replacement cost, Herbert wants all of the damaged property to be treated as part of the dwelling. Which one of the following damaged items is considered part of the dwelling? Snow blower Backyard swimming pool Oriental rug Central air-conditioning system
Central air-conditioning system
Most homes in a canyon were badly damaged by a wildfire that left James' home unscathed. Officials prohibit James from entering the canyon for 10 days until debris has been cleared from the canyon's only access road. What, if any, coverage in James's homeowners policy pay for his additional living expenses until he can return home? Civil authority prohibits use coverage applies. No coverage applies because James's house was not damaged. Additional living expense coverage applies. Fair rental value coverage applies.
Civil authority prohibits use coverage applies.
Sylvia is vacationing in Rome when her jewelry is stolen from her hotel room. Assuming theft is a covered peril, how will her homeowners policy respond, if at all? No coverage will be provided because the loss took place outside the United States. The loss will be covered only if the jewelry was scheduled. The loss will be covered only if she took out a special endorsement for coverage while traveling. Coverage is provided for personal property anywhere in the world.
Coverage is provided for personal property anywhere in the world.
A sublimit in Olin's homeowners policy establishes a $1,500 limitation on electronic apparatus and accessories while they are in or upon a motor vehicle. To which of the following items would this limit apply? Pen light in a passenger's shirt pocket Desktop computer in the back seat of Olin's car Television transported in Olin's trunk DVD player plugged into the lighter socket in Olin's car but which can be operated by other power sources
DVD player plugged into the lighter socket in Olin's car but which can be operated by other power sources
Kendra rents the upper story of her home to Moses. Kendra and her children live downstairs. Which of the following losses does Kendra's HO 3 cover? Moses' clothing damaged from a sewer back-up Moses' stolen TV Damaged carpeting in Moses's unit Moses' malfunctioning washer and drier
Damaged carpeting in Moses's unit
Debra and Larry buy a large house and rent one of the rooms to Jane, Larry's sister. Their home is insured with an HO 3. A tornado destroys the house. It will take several months to rebuild the home, so Jane cancels her lease. Which of the following is covered under loss of use coverage for the HO 3? Debra and Larry's rent for a home of similar size while their house is being rebuilt. Jane's moving expenses. Cost of rebuilding the destroyed house Jane's rent at another location.
Debra and Larry's rent for a home of similar size while their house is being rebuilt.
Which Insurance Services Office, Inc. (ISO), homeowners insurance form insures a single-family home provides on a named perils basis for both the dwelling and personal property? HO 4 HO 2 HO 6 HO 5
HO 2
Which Insurance Services Office, Inc. (ISO), homeowners insurance form insures a single-family home provides on a named perils basis for both the dwelling and personal property? HO 6 HO 5 HO 2 HO 4
HO 2
Which ISO homeowners insurance form that can be used to insure a single-family home provides open perils coverage on the dwelling and named perils coverage on personal property? HO 2 HO 5 HO 4 HO 3
HO 3
Which ISO homeowners insurance form that can be used to insure a single-family home provides open perils coverage on the dwelling and named perils coverage on personal property? HO 3 HO 4 HO 5 HO 2
HO 3
Jamie rents a two-bedroom apartment in a 12-unit apartment building where she lives with her two-year-old son. She wants to insure the personal property in their apartment. Which Insurance Services Office, Inc. (ISO), homeowners form, if any, would be appropriate for Jamie's situation? HO 4 HO 2 None is suitable for Jamie because she does not own a home. HO 6
HO 4
Jefferson and his wife Rosalinda own a 100-year-old home with plaster walls, solid oak doors, and other construction features not usually used in modern homes. They would replace these components with wallboard and hollow-core doors if the original walls and doors were damaged. Which Insurance Services Office, Inc. (ISO), homeowners policy might best meet this couple's needs? HO 8 HO 4 HO 6 HO 5
HO 6
Lucinda is selling her country home and buying a condominium unit in the city. She had a Homeowners Policy Special Form 3 (HO 3) policy on her home and wants comparable coverage on her condo. Which Insurance Services Office, Inc. (ISO), policy is best suited for her needs? HO 5 HO 4 HO 3 HO 6
HO 6
Lucinda is selling her country home and buying a condominium unit in the city. She had a Homeowners Policy Special Form 3 (HO 3) policy on her home and wants comparable coverage on her condo. Which Insurance Services Office, Inc. (ISO), policy is best suited for her needs? HO 6 HO 4 HO 3 HO 5
HO 6
Jefferson and his wife Rosalinda own a 100-year-old home with plaster walls, solid oak doors, and other construction features not usually used in modern homes. They would replace these components with wallboard and hollow-core doors if the original walls and doors were damaged. Which Insurance Services Office, Inc. (ISO), homeowners policy might best meet this couple's needs? HO 4 HO 5 HO 6 HO 8
HO 8
Don lives in a historical home with detailed millwork, marble bathrooms, and stained glass windows. The market value of the home is $400,000, but it would cost much more than that to rebuild with comparable levels of materials and craftsmanship. Which policy form is the most appropriate for insuring Don's home? HO-3 HO-6 HO-8 HO-4
HO-8
Jeremy's one-car garage is detached from his house, which is covered by an HO 3 homeowners policy. Under Coverage B-Other Structures of Jeremy's policy, in which situation would coverage not be provided? A tenant who rents part of the house keeps her record collection in the garage. His neighbor rents the garage to park her car there. His neighbor rents the garage to store household goods in the garage. A tenant who rents part of the house parks her car in the garage.
His neighbor rents the garage to store household goods in the garage.
HO 8 Policy is called? For older homes when their replacement cost may substantially exceed their market value: dwelling and other structures based on the amount needed to repair or replace the property using common construction materials and methods; loss of use, personal liability, and medical payments.
Homeowners Modified Form 8
HO 2 Policy is called? Dwelling, other structures, and personal property on a named perils basis; loss of use, personal liability, and medical payments.
Homeowners Policy Broad Form 2
HO 5 Policy is called? Dwelling, other structures, and personal property on an open perils basis; loss of use, personal liability, and medical payments. The broadest homeowners coverage.
Homeowners Policy Comprehensive Form 5
Alexander wants the broadest homeowners insurance policy that is available to insure his luxury home. Cost is no object. Which Insurance Services Office, Inc. (ISO), homeowners policy form will he most likely choose? Homeowners Policy Comprehensive Form 5 (HO 5) Homeowners Modified Form 8 (HO 8) Homeowners Policy Broad Form 2 (HO 2) Homeowners Policy Special Form 3 (HO 3)
Homeowners Policy Comprehensive Form 5 (HO 5)
HO 3 Policy is called? Dwelling and other structures on an open perils basis; personal property on a named perils basis (16 specified perils); loss of use, personal liability, and medical payments.
Homeowners Policy Contents Broad Form 4
HO 4 Policy is called? For tenants of houses or apartments: personal property on a named perils basis, loss of use, personal liability, and medical payments. No dwelling or other structures coverage except for building additions and alterations paid for by the insured.
Homeowners Policy Special Form 3
HO 6 Policy is called? For owners of condominiums and cooperative apartments: personal property on a named perils basis, limited dwelling coverage (for improvements, betterments, and items of real property pertaining exclusively to the residence premises), loss of use, personal liability, and medical payments.
Homeowners Policy Unit Owners Form 6
Ramiro's homeowners insurance policy makes several references to an "insured location." Which one of the following locations qualifies as an insured location? Parking space near his office provided by his employer Room in a nursing home where Ramiro's mother lives Ramiro's office in a downtown building owned by his employer Hotel room that Ramiro occupies while on a vacation
Hotel room that Ramiro occupies while on a vacation
Why is a homeowners insurance policy considered a package policy? It is associated with home ownership. It is usually delivered by a parcel service. It combines two or more separate coverages in a single policy. It comes in a policy binder.
It combines two or more separate coverages in a single policy.
Why is a homeowners insurance policy considered a package policy? It is associated with home ownership. It is usually delivered by a parcel service. It comes in a policy binder. It combines two or more separate coverages in a single policy.
It combines two or more separate coverages in a single policy.
All of the following were damaged or destroyed by a fire in Justin and Verna's home. Which of them is covered by their homeowners policy? Verna's favorite credit card was destroyed. Verna's dog suffocated from smoke inhalation. Smoke and soot tainted the air around their home after the fire. Justin's wheelchair was badly damaged.
Justin's wheelchair was badly damaged.
Kathie is the only person named in the declarations of her homeowners insurance policy. When her policy refers to an "insured," this most likely includes all the following EXCEPT: Kathie's father-in-law who lives in her house Kathie's next-door neighbor Kathie's husband Kathie
Kathie's next-door neighbor
Which of the following is not a benefit provided under Coverage D-Loss of Use of a homeowners policy? Prohibited use Legal liability expenses Additional living expense Fair rental value
Legal liability expenses
Lloyd's homeowners policy includes Coverage D-Loss of Use. Which of the following losses or expenses is not covered under Coverage D-Loss of Use? Lloyd stays in a hotel while the fire damage to his house is being repaired. After a fire, Lloyd cannot collect rent from a tenant who normally occupies the upstairs apartment. Although his house is not damaged, Lloyd is forced to stay in a hotel while fire fighters extinguish a fire in a nearby chemical plant. Lloyd sells his fire-damaged house and pays a mover to move his personal property to another house.
Lloyd sells his fire-damaged house and pays a mover to move his personal property to another house.
Sandy takes in boarders in her five-bedroom house. She insures the home with an HO 3. Which of the following boarders would have coverage for his or her belongings under Sandy's policy? Mary, a visitor from another city Mandy, her sister Marsha, her best friend Misty, her former college roommate
Mandy, her sister
Stephen and Hope own their single-family home, which is located on a lot with a garage that contains his woodworking shop (for his hobby), a treehouse for their children, and a swimming pool. Their motor home is parked behind the garage. Which one of the following is not included in their homeowners policy's definition of residence premises? Garage Swimming pool Treehouse Motor home
Motor home
Dennis and Amelia normally rent two rooms in their home to students attending a nearby college. The college canceled classes and sent all students home after an explosion destroyed the school's heating plant. What coverage, if any, is available under Dennis and Amelia's homeowners policy to cover their loss of rental income? Additional living expense. Fair rental value. . Civil authority prohibits use. None.
None.
Dennis and Amelia normally rent two rooms in their home to students attending a nearby college. The college canceled classes and sent all students home after an explosion destroyed the school's heating plant. What coverage, if any, is available under Dennis and Amelia's homeowners policy to cover their loss of rental income? Additional living expense. None. Civil authority prohibits use. Fair rental value. .
None.
A sublimit in Lowell's homeowners policy establishes a $1,500 limitation on electronic apparatus and accessories, while in or upon a motor vehicle. To which of the following items would this limit apply? Stereo system carried in the trunk of his car Pocket calculator in a passenger's purse Desktop computer in the back seat of his car Portable media player that is plugged into the lighter socket in Lowell's car but can also be operated by other power sources
Portable media player that is plugged into the lighter socket in Lowell's car but can also be operated by other power sources
Chris is the named insured in an HO 3 that covers the home where he resides. Which of the following property items does this policy cover? Hovercraft Two-passenger airplane Pick-up truck Radio-controlled airplane collection
Radio-controlled airplane collection
Rocco bought his home before he married Crystal. According to the declarations page of his homeowners insurance policy, Rocco is the named insured. While reading his homeowners insurance policy, Rocco notices that it often uses the word "you," and determines that it refers to Rocco and his immediate family any insured person the insurance company Rocco and Crystal
Rocco and Crystal
Rudy's home is covered by an HO 3 homeowners policy. Which of the following property items does this policy cover? Rudy's home-made hovercraft Rudy's radio-controlled model airplane Rudy's truck, which he keeps in his garage when it is not in use The biplane Rudy keeps in an airport hangar
Rudy's radio-controlled model airplane
Mia and Steve buy a new house and insure it with a homeowners policy. Which of the following items would not be covered under Coverage C-Personal Property of their policy? Steve and Mia's wooden deck Steve's riding lawnmower Mia's formal dresses Steve's home theater equipment
Steve and Mia's wooden deck
Mel owns a large home which he has insured. Which of the following items on his property is an example of an "other structure" as defined in Coverage B of his homeowners policy? Two-foot-tall garden statue Addition constructed off the kitchen Swimming pool Attached garage
Swimming pool
Linda owns a duplex and lives in one unit. She rents the other unit to Mickey. Assuming the cause of each loss is covered, which of the following situations is covered under Linda's HO 3? Mickey's stereo is stolen. The carpeting in Mickey's unit is damaged. Mickey's furniture is damaged due to a sewer back-up. Mickey's washer and drier are stolen.
The carpeting in Mickey's unit is damaged.
Dee converted her home's attached garage into an apartment that she rents to tenants. A tenant accidentally starts a fire in the apartment, rendering it uninhabitable for several months while it is being repaired. With respect to the apartment fire, what may Dee claim under her homeowner's policy? The fair rental value of the apartment while it is uninhabitable The cost to replace the tenant's furniture destroyed in the fire. The additional living expenses the tenant incurs while the apartment is being repaired The losses caused by a civil authority prohibiting use of the apartment
The fair rental value of the apartment while it is uninhabitable
Section I of Sylvia's homeowners policy includes Coverages A, B, C, and D. Which of the following is NOT considered a dwelling or part of the dwelling under Coverage A of Sylvia's homeowners policy? The fence along the sidewalk in Sylvia's front yard Sylvia's ranch-style house The gas furnace that heats Sylvia's house The garage attached to Sylvia's ranch style house
The fence along the sidewalk in Sylvia's front yard
Danny is adding a family room to his insured home. The lot next door is vacant, so he stores his materials there while he is constructing the family room. What kind of coverage is available if a wildfire destroys the building materials? The materials are covered because they are considered part of the dwelling. The materials are not covered because wildfire is an excluded peril. The materials are not covered because Danny is making the renovations, not a contractor. The materials are not covered because they are not on Danny's property.
The materials are covered because they are considered part of the dwelling.
Which of the following is not considered a dwelling or part of the dwelling under Coverage A of Aurora's homeowners policy? Central air-conditioning unit White picket fence along the sidewalk in Aurora's front yard Her two-story Colonial house The three-car garage attached to her house
White picket fence along the sidewalk in Aurora's front yard
Jordan converts her home's attached garage into an apartment that is normally occupied year-round by students who pay $300 per month. One tenant accidentally starts a fire in the apartment and Jordan is unable to rent the space for three months while it is repaired. Which coverage in Jordan's homeowners insurance policy covers her rental income loss? civil authority prohibits use additional living expense fair rental value reasonable repairs
fair rental value
All the following types of property are excluded from coverage under Section I—Property Coverages of an unendorsed homeowners policy EXCEPT furs pets personal property of boarders unrelated to the insured business data
furs
A retired concert pianist, Socorro earns $100 per week by giving piano lessons in her home to a few promising young musicians. According to Socorro's homeowners insurance policy, giving piano lessons is not a business because she only does it on a part-time basis. is not a business because Socorro is retired. is not a business because of the number of pupils she teaches. is a business because of the amount she earns.
is a business because of the amount she earns.
As defined in an Insurance Services Office, Inc. (ISO), homeowners insurance policy, the term "motor vehicle" will not include a self-propelled lawn mower motorboat motorized wheelchair motorcycle
motorboat
The HO-5 is called the comprehensive form because it provides coverage not found in other homeowners forms. What coverage does the HO-5 form provide that isn't found in the other forms? theft open perils for appurtenant structures liability open perils for personal property
open perils for personal property
All homeowners policies, regardless of the form number, provide coverage under Section II-Casualty. What is Section II coverage? dwelling and other structures personal liability and loss of use personal property and loss of use personal liability and medical payments
personal liability and medical payments
A retired artist, Amber gives free lessons in her home to promising young artists. According to Amber's homeowners insurance policy, giving art lessons is not considered a business because Amber is retired. art is not a trade or profession. she receives no money or other compensation. she only does it part time.
she receives no money or other compensation.
Roxanne has a standard HO 3 homeowners insurance policy with no added endorsements. She discovers that her diamond earrings have been stolen and notifies her insurance agent. The earrings were worth $5,000, but her insurance covers only a portion of the loss because her policy contains a(n) exclusion for any loss to jewelry. sublimit for loss of jewelry. exclusion for jewelry worth more than $1,500. unscheduled jewelry exclusion.
sublimit for loss of jewelry.
When Linda discovers that her diamond earrings have been stolen, she promptly notifies her insurance company. She has a standard HO 3 homeowners insurance policy with no added endorsements. The earrings were worth $5,000, but the adjuster informs her that her insurance covers only a portion of the loss because her policy contains a(n) exclusion for jewelry worth more than the policy deductible. provision reducing coverage on diamonds. sublimit for loss of jewelry. exclusion for unscheduled jewelry.
sublimit for loss of jewelry.
