1 Homeowners Insurance

Question 1

Coinsurance Clause in
Homeowners Insurance

Answer 1

FOR DWELLING, POLICY PAYS…

If insured ≥ 80% replacement, lesser of:
- Actual cost to repair
- Stated coverage limit

If insure < 80% replacement, greater of:
- “Actual cash value” of damage (replacement – depreciation)
- Proportion of loss = proportion of insurance maintained vs 80% of replacement cost

Coverage = (Did Have ÷ Should Have) x Loss Amount – Deductible

Remember that the policy will never pay more than the stated policy limit

Question 2

HO-02

Answer 2

Broad Form - Basic Homeowners Coverage

Question 3

HO-03

Answer 3

Special Form - Better Homeowners Coverage

Covers dwelling on open perils basis & contents on named perils basis

Question 4

HO-04

Answer 4

Contents Broad Form - For Tenants/Renters (only covers contents & liability)

Question 5

HO-05

Answer 5

Comprehensive Form - BEST Homeowner’s Coverage

Covers both dwelling & contents on open perils basis

Question 6

HO-06

Answer 6

Unit Owner’s Form - For Condo/Co-Op Owners (“studs in”, not roof or common area)

Question 7

HO-08

Answer 7

Modified Coverage - For Older or Historical Homes Only (less coverage)

Question 8

What does Coverage A refer to?

Answer 8

Address/Abode: Dwelling

(Property)

Question 9

What does Coverage B refer to?

Answer 9

Barn: Other structures

(Property)

Question 10

What does Coverage C refer to?

Answer 10

Crap / Contents: Personal property

(Property)

Question 11

What does Coverage D refer to?

Answer 11

Damaged / Destroyed Digs: Loss of Use / Add’l Living Expenses

(Property)

To pay for expenses while living somewhere else)

Question 12

What does Coverage E refer to?

Answer 12

Exposure to LiabilitE: Personal Liability

(Liability)

Question 13

What does Coverage F refer to?

Answer 13

Fractured Femurs: Medical Payments to Others

(Liability)

Small amount for injury