Homeowners Insurance Flashcards
(25 cards)
What does Coverage A in homeowners insurance refer to?
Dwelling coverage.
What does Coverage B in homeowners insurance refer to?
Other structures coverage.
What does Coverage C in homeowners insurance refer to?
Personal property coverage.
What does Coverage D in homeowners insurance refer to?
Loss of use coverage.
What does Coverage E in homeowners insurance refer to?
Personal liability coverage.
What does Coverage F in homeowners insurance refer to?
Medical payments coverage.
What is the description of the HO-02 policy form?
Broad Form. Basic Coverage
What is the description of the HO-03 policy form?
Special Form. Better Coverage. Covers Contents on a named peril basis.
What is the description of the HO-04 policy form?
Renters Insurance
Contents Broad Form.
What is the description of the HO-05 policy form?
Comprehensive Form. Best Coverage. Covers contents on an open peril basis.
What is the description of the HO-06 policy form?
Unit Owner’s Form. Condo
What is the description of the HO-08 policy form?
Modified Coverage. Older, historic homes.
What does named perils coverage specify?
Perils or ‘causes of loss’ that are covered.
What does open perils coverage specify?
Excluded perils or ‘causes of loss’ that will not be paid.
Which homeowners insurance forms provide the most comprehensive coverage?
HO-03 and HO-05.
What is the key difference between HO-03 and HO-05?
HO-03 covers contents on a named perils basis; HO-05 covers contents on an open perils basis.
How can the HO-03 policy provide open perils coverage for contents?
By adding a HO-15 endorsement.
Fill in the blank: The HO-03 policy can provide open perils coverage for contents by adding a _______.
HO-15 endorsement.
True or False: HO-08 is designed for older or historical homes with more coverage.
False.
What is a coinsurance clause in homeowners insurance?
A requirement that the dwelling is insured for at least 80% of the Replacement Cost Value (RCV) for a partial loss to be paid in full.
What happens if a dwelling is insured for 80% or more of the replacement cost?
The policy pays the LESSER of:
* The actual cost to repair damage or replace the building
* The stated limit of coverage under the policy
What happens if a dwelling is insured for less than 80% of the replacement cost?
The homeowners policy will pay the GREATER of:
* The ‘actual cash value’ of the damage (Replacement cost minus depreciation)
* Proportion of the loss equal to the proportion of insurance maintained as compared to 80% of the replacement cost
What is the homeowners coinsurance formula?
[‘Did Have’ + ‘Should Have’] x Loss Amount) - Deductible
Fill in the blank: The coinsurance requirement is _____% of the Replacement Cost Value (RCV).
80%
