Homeowner's Policy

Question 1

What is the primary difference between Dwelling policies & Homeowner’s?

Answer 1

Homeowner’s has liability coverage

Question 2

___ is a multiline policy because it provides Property & liability insurance in one policy.

Answer 2

Homeowner’s Policy

Question 3

In a homeowner’s policy, where would you find property corverage?

Answer 3

Section 1

Question 4

In a homeowner’s policy, where would you find personal liability?

Answer 4

Section 2

Question 5

What are the 6 coverage forms in a homeowner’s insurance policy?

Answer 5

HO2: Broad
HO3: Special
HO4: Contents Broad
HO5: Comprehensive
HO6: Condominium Unit Owners
HO7: Modified Coverage

Question 6

What type of dwelling is covered under a homeowner’s policy?

Answer 6

Private Home

Question 7

What types of forms may only be written for an owner occupant?

Answer 7

HO2
HO3
HO5
HO8

Question 8

What type of business is allowed in a homeowner’s policy?

Answer 8

Small incidental services

Question 9

___ Broad form provides property & Liability coverage on a named peril basis to owner-occupied homes of one-, two-, three-, or four family dwellings.

Answer 9

HO2

Question 10

___ special form (pen peril coverage) providing coverage on property & liability coverage to owner-occupied homes of one-, two, three, or four- fmaily dwellings.

Answer 10

HO3

Question 11

___ provides open peril coverage on the dwelling, other structures, & the loss of use (or additional living expenses) resulting from covered damage to the dwelling & other structures.

Answer 11

HO3

Question 12

___ also known as the tenant’s broad form.

Answer 12

HO4

Question 13

___ provides coverage for personal property & liability to a renter of a single-family home, condominium, apartment, or mobile home.

Answer 13

HO4

Question 14

___ provides the same coverage as the HO2 form except dwelling (Coverage A) & other structures (Coverage B)

Answer 14

HO4

Question 15

Which coverage form also provides coverage for improvements owned by the tenant (such as a stoorage building tenant added in backyard)

Answer 15

HO4

Question 16

___ also known as the condominium unit owners form.

Answer 16

HO6

Question 17

What form is designed for condominium or cooperative unit owners to cover their personal property?

Answer 17

HO6

Question 18

What is the amount for the loss assessment for HO6?

Answer 18

Up to $1,000

Question 19

What does HO6 cover?

Answer 19

Parts of the building (walls in) that are the respnsibility of the condominium unit owner.

Question 20

___ is also known as the modified form.

Answer 20

HO8

Question 21

___ is for owners of dwellings who can’t insure their old properties on a replacement cost basic because the replacement cost would exceed market value.

Answer 21

HO8

Question 22

What form can be used for homes of unusual construction that may be difficult to value?

Answer 22

HO8

Question 23

What is restricted under HO8?

Answer 23

Theft

Property away from premises

Question 24

All coverage forms include a basic deductible of $250 except…

Answer 24

Fire Department Service Charge
Credit Card
Forgery

Question 25

What does property coverages include?

Answer 25

``` Coverage A: Dwelling Coverage B: Other Structures Coverage C: Personal Property Coverage D: Loss of Use Coverage E: Additional Coverages ```

Question 26

What coverage is provided on forms HO2, HO3, HO5, & HO8?

Answer 26

Coverage A: Dwelling

Question 27

What coverage is a basic amount of insurance equal to 10% of the Coverage A limit?

Answer 27

Coverage B: Other Structures

Question 28

What forms are not applicable for Coverage B: Other Structures?

Answer 28

HO4: Tenant's Broad HO6: Condo's

Question 29

___ is equal to 50% of the Coverage A limit in HO2, HO3, HO5, & HO8 policies.

Answer 29

Coverage C: Personal Property

Question 30

Coverage C: Personal Property is equal to ___ of Coverage A: Dweilling.

Answer 30

50%

Question 31

___ can't be less than 40%, but can be higher.

Answer 31

Coverage C: Personal Property

Question 32

What is the minimum amount of coverage under Coverage C can HO4 & HO6 select?

Answer 32

$6,000

Question 33

___ is for either addiotional living expenses or fair rental alue if the premises become uninhabitable due to a covered loss.

Answer 33

Coverage D: Loss of Use

Question 34

Under Coverage D: Loss of Use, HO2, HO3, & HO5 is usually ___ of Coverage A: Dwelling.

Answer 34

30%

Question 35

Under Coverage D: Loss of Use, HO4 is ___ of Coverage C.

Answer 35

30%

Question 36

Under Coverage D: Loss of Use, HO6 is ___ of Coverage C.

Answer 36

50%

Question 37

Under Coverage D: Loss of Use, HO8 includes ___ Coverage A Dwelling.

Answer 37

10%

Question 38

___ is provided to an insured under this section if a claim is made or a suit is brought against the insured for damages due to bodily injury or property damage of others.

Answer 38

Coverage E: Personal Liability

Question 39

Under Coverage E: Personal Liability, the basic limit of liability provided by a homeowner's contrat is how much under the homeowner program?

Answer 39

$1,000 & may be increased for an additional premium

Question 40

Which coverage will the insurer pay necessary medical expenses incurred or medically discovered within 3 years from the date of an accident that causes bodily injury?

Answer 40

Coverage F: Medical Payment to Others

Question 41

___ are reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, & funeral services.

Answer 41

Medical Expenses

Question 42

What coverage is provided without the necessity of proving fault or liability for the accident-causing injury?

Answer 42

Medical Payments

Question 43

Who is covered under Coverage F: Medical Payments to Others in the insured's home?

Answer 43

Residence employees

Question 44

What is the basic limit of liability provided by Coverage F: Medical Payments to Others?

Answer 44

$1,000 per person & may be increased for an additional premium

Question 45

What are the 3 sets of perils in the Homeowner's Policy Coverage forms?

Answer 45

1. Basic Perils 2. Broad Perils 3. Open Perils

Question 46

___ is used by the HO8modified form for special risks.

Answer 46

Basic Perils

Question 47

What are the automatic coverages provided by Basic Perils?

Answer 47

``` Fire Lightening Windstorm or Hail Explosion Volcanic Erruption Riot or Civil Commotion Aircraft Vandalism/ Malicious Mischief (V&MM) Vehicles Smoke Theft ```

Question 48

___ used by the HO2 Broad form.

Answer 48

Broad Perils

Question 49

___ also used by the HO4, HO6, & the personal property coverge of HO3.

Answer 49

Broad Perils

Question 50

What types of loss does broad perils provide?

Answer 50

Weight of ice, snow, or sleet Accidental discharge or overflow of water or steam Freezing of plumbing or related systems Rupturing of heating, air conditioning, sprinkler, or hot water system Falling objects Artificially generated electric current Loss from smoke & vehicles

Question 51

___ insure against all risks not specifically excluded by the policy.

Answer 51

Open Perils

Question 52

___ coverage is used by the HO3 Coverage A & B only & the HO5.

Answer 52

Open Perils

Question 53

What are the duties after loss?

Answer 53

``` Notify the insurer promptly. Notify the police in case of theft. Notify credit card company and bank. Protect property from further damage. Cooperate with investigation. Prepare inventory of damaged property. Shaw damage, provide documentation, & submit to an examination under oath. Submit signed, sworn proof of loss. A statement swearing to the facts of the loss. ```

Question 54

What is replacement cost minus depreciation?

Answer 54

Actual Cash Value

Question 55

What property is settled on an actual cash value basis?

Answer 55

``` Personal Property Awnings Carpeting Household appliances Outdoor antennae Outdoor equipment (attached & detached) Grave markers ```

Question 56

Under replacement cost, buildings covered under coverages A & are subject to ___.

Answer 56

Coinsurance

Question 57

___ is how a loss to the insured property will be valued at the time of loss.

Answer 57

Loss Valuation

Question 58

___ is a factor in determing the premium charged & the amount of insurance required.

Answer 58

Loss valuation

Question 59

___ is a single property inaurance policy that provides coverage for multiple classes of property at one location.

Answer 59

Blanket insurance

Question 60

___ is a property insurance policy that covers a certian kind or unit of property for a certain amount of insurance.

Answer 60

Specific Insurance

Question 61

___ is dfined as the cost to replace damaged property with like kind & quality at today's price, without any dedction for depreciation.

Answer 61

Replacement Cost

Question 62

Insured carries coverage of at least ___% or cost to replace dwelling, the insurer will pay the replacement cost of damge to the dwelling in the event of a partial loss (the policy limit is paid in the event of total loss).

Answer 62

80%

Question 63

___ may be developed by payroll, receipts, or property taxes.

Answer 63

Rates

Question 64

___ is a clause included in many property & inland marine policies, in which the insurer is not obligated to pay for the total value of a set of items if only one item has been lost, damaged, or destroyed.

Answer 64

Pair & Set Clause

Question 65

What are the endorsements to Section I of Homeowner's Policy?

Answer 65

A personal property replacement cost Scheduled personal property Earthquake Coverage

Question 66

___ changes the valuation basis for Coverage C to replacement cost.

Answer 66

A personal property Replacement Cost

Question 67

___ broader coverage for jewelry, furs, cameras, musical instruments, silverware, fine art, golf equipment, & stamp or coin collections may be provided attaching an endorsement instead of writinga seperate personal articles floaters policy.

Answer 67

Scheduled Personal Property

Question 68

___ is excluded under homeowner's forms, but coverage can be added with the earthquake endorsement.

Answer 68

Earthquake coverage

Question 69

What does earthquake coverage endorsement include?

Answer 69

Earthquake Landslides Volcanic Erruptions Earth movements

Question 70

What are the endorsements for Section II of a homeowner's policy?

Answer 70

Perspnal Injury Business Pursuits Limited fungi, wet, or dry rot

Question 71

What does personal injury endorsement cover?

Answer 71

``` False arrest, detention, or imprisonment Malicious prosecution Libel Slander Defamation of character Invasion of Privacy Wrongful Eviction Wrongful entry ```

Question 72

``` Coverage A: Dwelling HO2 coverage amount is ___ HO3 coverage amount is ___ HO4 coverage amount is ___ HO5 coverage amount is ___ HO6 coverage amount is ___ HO8 coverage amount is ___ ```

Answer 72

``` HO2: $15,000 minimum HO3: $20,000 minimum HO4: Not covered HO5: $30,000 minimum HO6: $1,000 HO8: $15,000 minimum ```

Question 73

``` Coverage B: Other Structures HO2 coverage amount is ___ HO3 coverage amount is ___ HO4 coverage amount is ___ HO5 coverage amount is ___ HO6 coverage amount is ___ HO8 coverage amount is ___ ```

Answer 73

``` HO2: 10% of A HO3: 10% of A HO4: Not covered HO5: 10 % of A HO6: Part of A HO8: 10% of A ```

Question 74

``` Coverage C: Personal Property HO2 coverage amount is ___ HO3 coverage amount is ___ HO4 coverage amount is ___ HO5 coverage amount is ___ HO6 coverage amount is ___ HO8 coverage amount is ___ ```

Answer 74

``` HO2: 50% of A HO3: 50% of A HO4: $6,00 minimum HO5: 50% of A HO6: $8,000 HO8: 50% of A ```

Question 75

``` Coverage D: Loss of Use HO2 coverage amount is ___ HO3 coverage amount is ___ HO4 coverage amount is ___ HO5 coverage amount is ___ HO6 coverage amount is ___ HO8 coverage amount is ___ ```

Answer 75

``` HO2: 30% of A HO3: 30% of A HO4: 30% of C HO5: 30 % of A HO6: 50% of C HO8: 10% of A ```

Question 76

___ to professional liability or to injuries to fellow employees.

Answer 76

Business Pursuits

Question 77

What form(s) are available for Limited fungi, wet or dry rot, or bacteria endorsements?

Answer 77

HO3 & HO5

Question 78

___ adds additional liability caverage to their homeowner's policy for their outboard motorboats over 25 horsepower, inboard motorboats, & sailboats more than 26 feet in length.

Answer 78

Watercraft Endorsement

Question 79

What provides coverage for vicarious parental liability occurining when the watercraft is used by a minor or a child?

Answer 79

Watercraft Endorsement

Question 80

What are the exclusions for a watercraft endorsement?

Answer 80

Bodily injury to an employee of the injured who is working. | Watercraft used to carry passengers for a fee or rented to others.

Question 81

___ covers buildings & other structures for child or adult homecare business use at the insured's residence.

Answer 81

Home day care coverage.

Question 82

What endorsement changes the limit for Coverage E liability from an occurence limit to an annual aggregate?

Answer 82

Home Day Care Coverage

Question 83

What is the prpose of the causes of loss form that lists specific exclusions?

Answer 83

To state which perils are insurade against.

Question 84

Which Homeowner form covers fixtures, installations, and improvements made or acquired at the insured's expense?

Answer 84

HO-4

Question 85

Who created The National Flood Insurance Program?

Answer 85

The United States Congress