4 - Section I of the Homeowners Policy Forms

Question 1

Homeowners insurance is property insurance that covers ______ family private owner-occupied dwellings.

Answer 1

-1 - 4

Question 2

How is Homeowners different than SFP and the DPFs?

Answer 2

-automatically includes personal liability insurance and medical payments to others

Question 3

The Homeowners Policy is referred to as a __________ insurance contract.

Answer 3

-multiple-line

Question 4

What does the premium cost of Homeowners depend on?

Answer 4

• what amount it would cost to replace the dwelling

- any endorsements that are attached to the Homeowners Policy

Question 5

Eligibility for the Homeowners Policy

Answer 5

• property owner must occupy in the dwelling

- dwelling may be either a one-family or two-family dwelling

Question 6

Persons considered insured in the Homeowners Policy

Answer 6

• name insured, spouse in same household
• resident relative of the named insured or spouse (blood or marriage)
• students enrolled in full-time under age of 24
• persons under age 21 living in household
• any person employed by the insured at the residence

Question 7

6 Homeowners Forms

Answer 7

• HO-2
• HO-3
• HO-5
• HO-8
• HO-4
• HO-6

Question 8

HO-2

Answer 8

• Broad From

- “named perils”

Question 9

HO-3

Answer 9

• Special Form

- “all risk” for Coverage A and B

Question 10

HO-5

Answer 10

• Comprehensive Form

- “all risk” for Coverage A, B and C

Question 11

HO-8

Answer 11

• Modified Form
• dwellings that do not qualify for HO-2,3 or 5 due to age or construction
• Perils are covered on a specific named basis

Question 12

HO-4

Answer 12

• Contents Form

- tenant/renters providing perils coverage on a named basis for Coverage C losses

Question 13

HO-6

Answer 13

• Unit Owners

- Condos/owned apartments on a named perils basis for Coverage A and C

Question 14

HO-2, HO-3, HO-5 and HO-8 Coverage B

Answer 14

-10% of Coverage A

Question 15

HO-2, HO-3, HO-5 and HO-8 Coverage C

Answer 15

-50% of Coverage A

Question 16

HO-2, HO-3, HO-5 and HO-8 Coverage D

Answer 16

• 20% of Coverage A for 2,3 and 5

- 10% of Coverage A for 8

Question 17

HO-4 Coverage C

Answer 17

-broad form perils

Question 18

HO-4 Coverage D

Answer 18

-Loss of Use coverage is 20% of Coverage C

Question 19

HO-6 Coverage A

Answer 19

-$1,000

Question 20

HO-6 Coverage C

Answer 20

-written in an amount as needed

Question 21

HO-6 Coverage D

Answer 21

-Loss of Use coverage is 40% of Coverage C

Question 22

Debris Removal Additional Coverage

Answer 22

-up to $500

Question 23

Trees, Shrubs, Plants and Lawns Additional Coverage

Answer 23

• up to 5% of the liability limit for the dwelling

- cannot exceed $500 for any one tree, shrub or plant

Question 24

Property Removed

Answer 24

-pays for property removed from the premises for a period of no more than 30 days

Question 25

Counterfeit Money

Answer 25

-losses up to $500

Question 26

Landlord’s Furnishings

Answer 26

-up to $2,500

Question 27

Ordinance or Law (Increased Costs)

Answer 27

-may provide up to 10% of Part A to pay for increased costs due to construction requirements based on an ordinance or law

Question 28

Grave markers and mausoleums

Answer 28

-up to $5,000

Question 29

Excluded Perils in the Homeowners Forms

Answer 29

• Ordinance or Law
• Earth Movement
• Water Damage
• Power Failure
• Neglect
• War
• Nuclear Hazard
• Intentional Loss
• Government Action

Question 30

Proof of loss must be sent in within…

Answer 30

-60 days after the insurer’s request

Question 31

Suit Against Us

Answer 31

-no lawsuit can be brought against the issuer of the policy within 3 years after the date of loss

Question 32

Loss Payment

Answer 32

-loss will be payable 60 days after the insurer receives the proof of loss

Question 33

Volcanic Eruption Period

Answer 33

-one or more volcanic eruptions that occur within a 72 hour period will be considered one eruption

Question 34

Policy Deductible for HO

Answer 34

-Minimum Deductible is $250

Question 35

Coinsurance Requirement

Answer 35

• require the insured to carry a minimum amount of coverage to be eligible for full payment of partial losses to the dwelling
• 80% of the replacement value of the dwelling

Question 36

Property policies can be written for a period of up to a maximum of….

Answer 36

-7 years in length

Question 37

Non-renewal of HO Policy

Answer 37

-can elect not to renew the policy but must deliver/mail a notice at least 30 days before the expiration date of the policy