Homeowners (HO) Property Coverage

Question 1

Appraisal

Answer 1

IF failure to agree on amount of loss, both parties can agree to an appraisal and bound by it. 2/3 vote counts as a legal appraisal

Question 2

No Benefit to Bailee

Answer 2

Policy will not cover the bailee for holding, storing, or moving property for the owner for a fee.

Question 3

Loss Payment

Answer 3

Insurer will adjust all losses with and pay the named insured. Payments are due 30 days after receipt of proof of loss.

Question 4

Recovered Property

Answer 4

If the insured recovers property after a claim has been paid, they must notify the other party. Insured can keep the land and some money or give the property to the insurer and keep all the money

Question 5

Insured’s Duties after Loss

Answer 5

• Notify insurer promptly
• Protect property from further damage by making necessary repairs (keep record of money spent)
• Collect all damaged property and attach policies ad other documents to justify figures
• Show records, damaged property, and submit under oath and to examination. Fully comply with insurer.
• Send insured, if asked, a signed, sworn proof of loss

Question 6

Property Forms

Answer 6

HO 00 02 (Broad Form): Provides broad form named peril coverage for owner-occupants.
HO 00 03 (Special Form): Provides special form Dwelling and other structures on the premise and Broad form coverage on personal property
HO 00 04 (Tenants Form): Provides broad form named peril coverage for tenants
HO 00 05 (Comprehensive Form): Provides special form coverage for dwelling, other structures on premise and personal property.
HO 00 06 (Unit Owners Form): Provides broad form named peril coverage for owner-occupants of condominium units.
HO 00 08 (Modified Form): Provides modified named peril coverage to owner-occupants generally for older homes.

Question 7

HomeOwner Forms

Answer 7

Buildings||Contents
HO 00 02: Broad || Broad
HO 00 03: Special || Broad
HO 00 04: N/A || Broad
HO 00 05: Special || Special
HO 00 06: Broad (small amount) || Broad
HO 00 08: Basic || Basic

Question 8

HO Policy Sections

Answer 8

1. Section I provides property coverage
   - Coverage A: (02, 03, 05, and 08) covers property loss to dwelling
   - Coverage B: (04 and 06) covers property loss to other structures on premise
   - Coverage C: covers property loss to personal property used by insured anywhere in the world
   - Coverage D: covers indirect losses caused by loss of use when the dwelling is damaged. Provides one total limit of liability for fair rental value and additional living expenses.
2. Section II provides personal liability and medical payments coverages.

Question 9

Lower Coverage Limits for Specific Property

Answer 9

• Money, coins, precious metals other than tableware: $200
• Securities, manuscripts, valuable papers: $1,500
• Watercraft, trailers on premise: $1,500
• Business property on premise: $2,500
• Business property away from premise: $2,500
• $15,000 fur coat. Lost in fire, completely covered, stolen: $1,500
• Loss of a Tree: $500
• Fire Department service fee: $500
• Credit Card Theft: $500