S1: Homeowner

Question 1

Homeowners Insurance is divided into (2)

Answer 1

1. Property
2. Liability

Question 2

Property is sections (letters)

Answer 2

A B C D

Question 3

Liability is sections (letters)

Answer 3

E F

Question 4

Homeowners
A
B
C
D
E
F

Answer 4

A: Dwelling
B: Other Structures
C: Personal Property
D: Loss of Use
E: Personal Liability
F: Medical Payment to Others

Question 5

Homeowners - Coverage A Dwelling:
insurers against: (2)

Answer 5

1. damages to your home from specific perils
2. all-risks basis up to a limit

Question 6

Homeowners - Coverage A Dwelling:
Perils excluded (6)

Answer 6

earthquake, flood, criminal/intentional acts, nuclear, war, terrorism

Question 7

Homeowners - Coverage A Dwelling:
Doctrine of Proximate

Answer 7

Loss is covered if and only if a covered peril under a policy is proximate cause of covered consequence

Question 8

Homeowners - Coverage B: Other structures

Answer 8

protection for Garage, Shed, or other structures of dwelling. Actual value or replacement costs

Question 9

Homeowners - Coverage C: Personal Property

Answer 9

Personal Property and contents of the house. Actual value or replacement costs

Question 10

Homeowners - Coverage C: Personal Property
Inside Limit

Answer 10

Amount of compensation/settlement

Question 11

Homeowners - Coverage C: Personal Property
Valued Benefit

Answer 11

Insurer pays appraised vales not market of securities

Question 12

Homeowners - Coverage D: Loss of Use

Answer 12

compensation for additional living expenses or loss of rental income. Pay for accommodations while repairs are being done on home

Question 13

Homeowners - Coverage E: Personal Liability

Answer 13

provide third party liability coverage if TP is injured or property damaged on insured premises

Question 14

Homeowners - Coverage F: Medical Payments to others

Answer 14

provide third party medical benefits if TP is inured on insureds premises without insured being sued

Question 15

Tenants Package

Answer 15

(those who rent a house) renters insurance, less coverage as fewer risk exposure

Question 16

Coinsurance

Answer 16

penalizes insured if limit purchased is less than a specified percentage of full value of dwelling

Question 17

Why does home coinsurance exist

Answer 17

distribution of homeowners heavily weighted to small amount claims. Pose greater risk if can purchase and receive full coverage without penalty