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Flashcards in Ch 5 Homeowners Deck (102)
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What are the different homeowners forms?

HO2: Broad
HO3: Special
HO4: tenants broad form
HO5: comprehensive form
HO6: condo


Is a five family structure eligible for a HO policy?

No. Must have 4 or fewer units


Is 4 unit structure where one unit has 3 boarders eligible?

No limit is 2 per family.


John has a house down the cape where he spends one month each year. When he is not there there is no other resident. Would he qualify for a HO?

If property is seasonal must be occupied for three months.


John and Samantha each buy one unit of a duplex. Can they purchase a HO policy?



Herbert is getting old. He transfers his home into a life trust. Is the home eligible for a HO3?

Yes. Life estates can have a policy.


Can a tenant take out a HO policy?

Yes. HO4


John has an interesting property. He has a trailer park and a farm. The mobile home and travel trailer owners want to write HO3 policies but cannot? John wants to insure the farm portion but cannot purchase an HO3. Why?

All are excluded.


What are the coverage parts of Section I of a HO policy?

A: dwelling
B: other structures
C: in scheduled personal property
D: Loss of use


Does a property that is rented to others covered under part A?



How is the coverage among of Coverage B determined?

10% of A


What is specifically excluded from Part B?

Damage to a fence, pool, patio, foundation, outbuilding, bulkhead, retaining wall caused by weight of water, ice, sleet, snow, whether wind driven or not.

Property used for business.

Property rented except for garage.


What is the amount of coverage automatically provided by Part c?

50% of A


Who is covered under part c?

Household member
Child at college


Where is property covered under part c?

Anywhere in the world. If property is at secondary residence, coverage is 10% of c limit or $1000


Does coverage c cover property borrowed or used by an insured?



Which perils are property covered against under part c?

Broad form:
1) fire/lightning
2) windstorm/hail
3) explosion
4) riot/civil commotion
5) aircraft
6) vehicles
7) smoke
8) theft (includes robbery & burglary)
9) vandalism
10) falling objects
11) weight of snow, ice, sleet
12) accidental discharge or overflow
13) sudden and accidental tearing apart, cracking, burning or bulging.
14) freezing of plumbing/heating (if reasonable care used)
15) sudden or accidental damage from artificially generated electrical current
16) volcanic eruption.
All but HO5 have this form


What is the sublimit for money?



What is the sublimit for securities, tickets, passports & stamps?



What is the sublimit for watercraft and accessories?



What is the sublimit for theft loss of jewelry, watches, and furs?



What is the sublimit for theft of firearms?



What is the sublimit for theft of silverware?



What is the sublimit for business property ON PREMISES?



The insured's fur coat is missing. She thinks she heard a sound overnight so she reports that she was burglarized. Police find no evidence of burglary. Is the loss covered as a burglary?

No. No signs of forcible entry.


The policy will not cover a theft loss:

1) committed by the insured
2) of materials stolen at site of dwelling under construction.
3) that occurs off the residence premises of trailers, campers, watercraft+equipment or PERSONAL PROPERTY AT A SWCONDARY RWSIDENCE


Uncle bills NH ski vacation home is burglarized while he is in MA for the summer. Is there coverage under his primary home's policy?

No. Theft is only covers while temporarily living in the secondary.


Juan is down the Vineyard at his vacation home. His HO policy at his Weston residence has part A $2 million. He incurs a a covered Part C theft loss of $175,000. How much coverage is available? If he were at his primary residence, what would be covered?

Part C limit is 50% of Part A: 2MM/2 = $1MM. There is a sublimit of 10% for property usually located at a residence other than the primary = $100k if on premises. No coverage got theft of property if off premises. Other perils are covered if away.


Is a hobby or model aircraft covered under C.



What is not covered under part C?

Motorized vehicles
Animals / pets
Business data
Property belonging by unrelated tenant
Property that is regularly rented to others