5 - Homeowners Policy

Question 1

Coverages A, B, C, D, E & F

Answer 1

Dwelling
Other structures
Personal property
Loss of use
Personal liability
Medical payments to others

Question 2

Money limit for gold, coins or cash money?

Answer 2

$200

Question 3

Limit for water craft and trailers?

Answer 3

$1,500

Question 4

What’s the limit for theft of jewelry, watches, furs and stones?

Answer 4

$1,5000

Question 5

What’s the limit for portable electronic apparatus while in a motor vehicle?

Answer 5

$1,500

Question 6

What’s the limit for theft of firearms?

Answer 6

$2,500

Question 7

What’s the limit for theft of silverware?

Answer 7

$1,500

Question 8

What’s the limit for business property AT the residence premises?

Answer 8

$2,500

Question 9

What’s the limit for business property AWAY from the promises?

Answer 9

$1,500

Question 10

Extensions of Coverage

Answer 10

Build into the contract and require no additional premium

Question 11

Debris removal

Answer 11

Additional 5% of coverage A

Question 12

Credit card and forgery limit?

Answer 12

$500 in addition to limits & without a deductible

Question 13

Limits for trees, shrubs and plants?

Answer 13

up to 5% of A but no more than $500 per tree/plant/shrub

Question 14

How much will insurance cover on a HO policy for loss earnings in a defense?

Answer 14

Up to $250 a day

Question 15

Which HO forms are Named Peril?

Answer 15

1, 2, 4, 6 and 8

Question 16

Which HO forms are All Risk?

Answer 16

3 & 5

Question 17

ALL HO forms cover…

Answer 17

Theft, personal liability and medical payments to others

Question 18

Bankruptcy of an insured does not…

Answer 18

Relieve the insurer of their obligations under the policy

Question 19

Cancellation or no renewal needs how many days?

Answer 19

10 advanced notice

Question 20

Two sections of HO?

Answer 20

Property and liability

Question 21

What does Section 2 cover?

Answer 21

Insured legal liability to others, both on and off the premises

Question 22

Are endorsements for a HO policy for an additional premium?

Answer 22

Most of them but not all of them

Question 23

Inflation guard endorsement

Answer 23

Automatic raises the coverage a and b limits to keep up with inflation. Guarantees replacement cost coverage

Question 24

Personal Articles Floater (PAF)

Answer 24

Coverage on a ACV basis and an appraisal is normally needed.
Normally automatically covers new items but insured must report new property to insurer within 30 days

Question 25

How are Fine arts covered?

Answer 25

Agreed it stated value basis and a pair will be paid as a full set.

Question 26

Maximum of how much for property coverage for a business property?

Answer 26

$2500 is typical

Question 27

There is no coverage A or B on a HO-4?

Answer 27

True

Question 28

The HO-6 does not cover the condo building structure or common condo structures?

Answer 28

True. “Interior space”

Question 29

HO-1 Basic Form
Key points

Answer 29

Named peril on dwelling and contents.
A & B is replacement cost
Personal property is actual cash value
Theft is included

Question 30

HO-2 Broad Form
Key points

Answer 30

Named peril for dwelling and contents
Coverage A is replacement cost
Coverage C is ACV

Question 31

HO-3 Special Form
Key points

Answer 31

Most popular
All risk on dwelling and other structures
Coverage C, contents, are named peril, ACV

Question 32

HO-4 Renters or Tenants
Key Points

Answer 32

No structure coverage
No coverage A or B
Personal property is named peril basis
Theft is included

Question 33

HO-6 Condominium Unit Owners Form
Key Points

Answer 33

Does not cover condo building or common structures.
Coverage A, $1,000, for alterations, built ins, fixtures and improvements
Coverage is named peril

Question 34

HO-5 Comprehensive Form

Answer 34

Parallel to HO-3
Adds open peril coverage for the dwelling, other structures and personal property without needing an endorsement

Question 35

HO-8 Modified Form
Key points

Answer 35

Older homes when the RC of dwelling exceeds the market value.

Will not pay more than the cost of using common construction materials and methods that are equivalent and less costly.

Personal property is ACV

Named peril