4 - Section I of the Homeowners Policy Forms Flashcards
Homeowners insurance is property insurance that covers ______ family private owner-occupied dwellings.
-1 - 4
How is Homeowners different than SFP and the DPFs?
-automatically includes personal liability insurance and medical payments to others
The Homeowners Policy is referred to as a __________ insurance contract.
-multiple-line
What does the premium cost of Homeowners depend on?
- what amount it would cost to replace the dwelling
- any endorsements that are attached to the Homeowners Policy
Eligibility for the Homeowners Policy
- property owner must occupy in the dwelling
- dwelling may be either a one-family or two-family dwelling
Persons considered insured in the Homeowners Policy
- 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
6 Homeowners Forms
- HO-2
- HO-3
- HO-5
- HO-8
- HO-4
- HO-6
HO-2
- Broad From
- “named perils”
HO-3
- Special Form
- “all risk” for Coverage A and B
HO-5
- Comprehensive Form
- “all risk” for Coverage A, B and C
HO-8
- 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
HO-4
- Contents Form
- tenant/renters providing perils coverage on a named basis for Coverage C losses
HO-6
- Unit Owners
- Condos/owned apartments on a named perils basis for Coverage A and C
HO-2, HO-3, HO-5 and HO-8 Coverage B
-10% of Coverage A
HO-2, HO-3, HO-5 and HO-8 Coverage C
-50% of Coverage A
HO-2, HO-3, HO-5 and HO-8 Coverage D
- 20% of Coverage A for 2,3 and 5
- 10% of Coverage A for 8
HO-4 Coverage C
-broad form perils
HO-4 Coverage D
-Loss of Use coverage is 20% of Coverage C
HO-6 Coverage A
-$1,000
HO-6 Coverage C
-written in an amount as needed
HO-6 Coverage D
-Loss of Use coverage is 40% of Coverage C
Debris Removal Additional Coverage
-up to $500
Trees, Shrubs, Plants and Lawns Additional Coverage
- up to 5% of the liability limit for the dwelling
- cannot exceed $500 for any one tree, shrub or plant
Property Removed
-pays for property removed from the premises for a period of no more than 30 days
Counterfeit Money
-losses up to $500
Landlord’s Furnishings
-up to $2,500
Ordinance or Law (Increased Costs)
-may provide up to 10% of Part A to pay for increased costs due to construction requirements based on an ordinance or law
Grave markers and mausoleums
-up to $5,000
Excluded Perils in the Homeowners Forms
- Ordinance or Law
- Earth Movement
- Water Damage
- Power Failure
- Neglect
- War
- Nuclear Hazard
- Intentional Loss
- Government Action
Proof of loss must be sent in within…
-60 days after the insurer’s request
Suit Against Us
-no lawsuit can be brought against the issuer of the policy within 3 years after the date of loss
Loss Payment
-loss will be payable 60 days after the insurer receives the proof of loss
Volcanic Eruption Period
-one or more volcanic eruptions that occur within a 72 hour period will be considered one eruption
Policy Deductible for HO
-Minimum Deductible is $250
Coinsurance Requirement
- 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
Property policies can be written for a period of up to a maximum of….
-7 years in length
Non-renewal of HO Policy
-can elect not to renew the policy but must deliver/mail a notice at least 30 days before the expiration date of the policy
