Dwelling and Homeowners

Question 1

Friendly Fire

Answer 1

a fire started intentionally to do a job which is under control and in an intended area (fire place)

Question 2

unfriendly fire (hostile fire)

Answer 2

a fire you did not start intentionally or a friendly fire which is no longer doing what it was intended to do

Question 3

Different Perils

Answer 3

Fire - fire and lightning
E.C. - wind, civil commotion, smoke, hail, aircraft, vehicles, explosion, riot
V &MM - vandalism, malicious mischief

Question 4

Dwelling

Answer 4

owner or non-owner occupied 1-4 units

Question 5

DP-1 (Basic / Named Peril)

Answer 5

Fire, E.C. and V&MM

Question 6

DP-2 (Broad / Named Peril)

Answer 6

Fire, E.C. and V&MM + damage by burglary, falling objects, weight of ice/snow/sleet, artificial electricity, accidental discharge, tearing furnace/ac, freezing plumbing, glass breakage

Question 7

DP-3 (Special / Open Peril)

Answer 7

Open to all perils except for whatever exclusions are included in policy

Question 8

Dwelling details:

Answer 8

none of the fire forms provide THEFT coverage (needs to be added with Broad Theft Endorsement only for owner occupied)

Also, does not provide liability coverage (personal liability supplement endorsement available)

Question 9

What type of peril coverage is afforded for contents if contents coverage purchased?

Answer 9

DP-1: dwelling = basic, contents = basic
DP-2: dwelling = broad, contents = broad
DP-3: dwelling = special, contents = broad

Question 10

Dwelling fire forms do not allow:

Answer 10

Replacement cost on contents to be endorsed

Question 11

Automatic Dwelling Coverage (DP-1 & DP-2)

Answer 11

a. Dwelling (anything permanently attached to the building)
- you pick the amount, replacement cost
b. Other structures (another structure seperated by clear space from original dwelling)
- 10% of coverage A
c. Personal property (contents, movable personal property)
- not unless you select it
d. Fair Rental Value (loss of rentail income due to a covered loss)
- 10% of coverage A
e. Additional living expense (additional costs incurred to stay somewhere else and eat out until can get back into home
- 10% of coverage A

Question 12

Homeowners

Answer 12

owner occupied residential 1-4 units (owner must occupy at least 25%)

Question 13

HO-1 (Basic)

Answer 13

Fire, E.C., V&MM, Theft, Glass Breakage, Volcano

Question 14

HO-2 (Broad)

Answer 14

Fire, E.C., V&MM, Theft, Glass Breakage, Volcano, Damage by burglary, falling objects, weight of ice/snow, artificial electricity, accidental discharge, tearing furnace/ac. freezing of plumbing

Question 15

HO-3 (Special)

Answer 15

Open perils unless excluded

Question 16

What type of peril coverage is afforded for contents?

Answer 16

HO-1: dwelling = basic, contents = basic
HO-2: dwelling = broad, contents = broad
HO-3: dwelling = special, contents = broad
HO-5: dwelling = special, contents = open
HO-4/6: dwelling = n/a, contents = broad
HO-8: dwelling = basic, contents = basic

Question 17

What cost does HO-8 settle at vs all other HO’s?

Answer 17

HO-8 settles at repair cost or AVC on the structure. All other Homeowners forms are Replacement value

Question 18

HO-8 (functional replacement cost)

Answer 18

typically used on older homes, for example have woodwork that would be difficult to replace today or for homes that would not be rebuilt

Question 19

Limited Fungi, Wet or Dry Rot or Bacteria Coverage Endorsment

Answer 19

applies only when the fungi or rot result from a covered peril (pipe burst, water to put out fire). Covers cost to remove fungi, tear out and replace damaged parts of the building, test air

Question 20

Following coverages are automatically included in a Homeowner’s Policy (the dwelling is replacement cost as long as insured to at least 80% of replacement value, if not automatically becomes AVC)

Answer 20

a. Dwelling
- replacement cost
b. Other Structures
- 10% of A
c. Personal Property
- 50% of A
d. Loss of Use (combines loss of rental income and additional living expense)
- 30% of A
e. Personal Liability
- $100,000 per occurence
f. Medical Payments
- $1,000 per person

Question 21

Liability for HO policy

Answer 21

1) conditions of the premises
2) personal actions of insured (negligent actions not intentional)
3) includes coverage for golf carts

Question 22

Medical payments for HO policy

Answer 22

1) doesn’t pay med bills to insured
2) can occur on or away from premises
3) expenses occurred within 3 years

Question 23

How much is allocated for fire department under HO policy?

Answer 23

$500

Question 24

HO policy has certain types of personal property limits to a specific dollar amount:

Answer 24

Money = $200
Watercraft = $1500
Trailers = $1500

Question 25

The following are limited only for the peril of theft under a HO policy:

Answer 25

Jewelry, fur, watches = $1500 Silverware = $2500 Guns = $2500

Question 26

Personal Articles Floater (endorsement on HO)

Answer 26

Benefits: 1) all risk coverage 2) stated amount 3) world wide coverage (expect fine arts) 4) no deductible

Question 27

Home Day Care liability (endorsement on HO)

Answer 27

Endorsed on, extra cost

Question 28

Drones (under HO policy)

Answer 28

used for personal use are covered as personal property. when used legally, liability is covered under personal liability

Question 29

Backup of sewer/sump pump discharge

Answer 29

if insured purchased the coverage, the water back up endorsement applies to the sewage as well as water itself. If caused by a flood, this would not be covered.

Question 30

Mobile Home Insurance (think HO-3)

Answer 30

a. Dwelling (structure itself and anything permanently attached - including LP tanks) - value of mobile home b. Other structures (separated by clear space from the original structure) - 10% of A c. Personal Property (movable contents) - ACV d. Loss of Use (combines living expense and loss of rents) - 30% of A

Question 31

Additional coverage for mobile home:

Answer 31

$500 for reasonable expenses incurred in removing and returning a mobile home threatened by a Covered Peril

Question 32

Endorsements to add to Mobile home policy

Answer 32

AVC transportation/permission to move - covers wanting to move the mobile home - covers while mobile home is being moved

Question 33

Mobile home has what type of peril power?

Answer 33

Open perils

Question 34

What qualifies a mobile home?

Answer 34

- not a pop up campers - not RV - not tent - needs to be (portable (tied down to foundation), year round living, at least 10'x40' (400 sq ft)

Question 35

HO-1 Basic

Answer 35

Basic perils dwelling & contents | Owner occupied home

Question 36

HO-2 Broad

Answer 36

Broad form perils dwelling & contents | Owner occupied home

Question 37

HO-3 Special

Answer 37

open perils dwelling & broad form perils contents | owner occupied home

Question 38

Ho-4 Renters

Answer 38

No Dwelling coverage & Broad form contents

Question 39

HO-5

Answer 39

Open Perils dwelling & contents | owner occupied home

Question 40

HO-6 Condo

Answer 40

$1,000 dwelling | Broad form perils dwelling & contents

Question 41

HO-8

Answer 41

Functional replacement cost - older home

Question 42

Who is the primary insurer of flood insurance?

Answer 42

Federal Government

Question 43

What is the minimum deductible for flood insurance?

Answer 43

$1000 (applies separately to building and contents)

Question 44

Maximum coverage of building and contents for Flood insurance?

Answer 44

$250,000 on building and $100,000 on contents

Question 45

Waiting period for flood ins?

Answer 45

30 days

Question 46

Is sewer backup included in flood ins?

Answer 46

no it is excluded

Question 47

Earthquake peril endorsement

Answer 47

provides protection against earthquake and volcanic eruption

Question 48

What is the time period for earthquake shocks to happen within in for residential and commercial property

Answer 48

``` Residential = 72 hours Commercial = 168 hours ```

Question 49

Earthquake insurance deductible?

Answer 49

% of the dwelling/building coverage and applies separately to each building and the contents of that building

Question 50

Watercraft can be covered under 3 types of policies:

Answer 50

1) homeowner's 2) boat-owner's 3) yacht

Question 51

Homeowner's policy auto provides coverage for watercraft furnishings, trailers, equipment and outboards up to:

Answer 51

$1500 Wind and hail peril are only covered if boat was in a fully enclosed building Theft is only covered if ON the premises Liability is auto protected for watercraft with less than 25 horsepower and less than 26 ft long

Question 52

Boat-owner's policy

Answer 52

boat = permanently attached equipment loss settled at ACV Medical payments included in liability (can add underinsured boaters BI) In order for a replacement boat to be covered by policy, you must notify insurance company within 45 days

Question 53

Yacht Policy

Answer 53

is an Ocean marine contract - covers inboard boats/larger sailboats - open peril - repairs are replacement cost basis - coverage for hull includes: masts, ropes, navigation equip, and tenders

Question 54

Watercraft exclusions

Answer 54

not covered while: - carrying people or property for a fee - loss caused while racing - war & nuclear - Workers Comp