Ch. 4 - Homeowners Policy FLASH CARDS
In general, what do Homeowners policies cover?
Dwellings used primarily as private residences
What type of coverage is included in HO policies, but is not available in DP?
Liability coverage
What HO form covers condominium unit owners?
HO-6 (condo unit owners)
What coverage forms are available in HO policies?
HO-2, HO-3, HO-4, HO-5, HO-6, HO-8
When replacement coverage cost is not reasonable, what type of HO coverage is applicable?
HO-8 modified HO form is intended for use when the replacement cost coverage is not practical.
What HO form insurers tenant living in an apartment?
HO-4 (tenant broad form)
What is mysterious disappearance?
Misplacement or loss of property without knowledge as to what the location, time, and cause of the loss.
What does form HO-5 cover?
Dwelling/other structures, as well as contents and personal property.
Under Coverage C of an HO-3 policy, what is the amount of insurance provided for personal property?
At least 50% of the Coverage A limit (this applies to all policies except for HO-4 and HO-6)
In HO policies, which coverage provides protection against an indirect or consequential loss?
Coverage D - Loss of Use
An insured with HO policy has removed property from the insured locations to protect it from loss that could be caused by a covered peril. The removal coverage applies for how many days?
30 days
What HO policy form is known as a special form?
HO-3 special form
When is an appraisal needed and how can it be requested?
If an insured and an insured disagree about the value of a property loss, either party can make a written demand for an appraisal.
What are some of the exclusions from coverage in all the HO forms?
Land Structures used for business purposes Animals/fish/birds Aircraft Rented property Electronic data Motor vehicles
What type of coverage is included in Section II of HO insurance?
Personal liability coverage
What are additional coverages in HO policies without additional premiums? (name several)
Debris removal Lawn/plants/shrubs/trees Removal Reasonable repairs Fire department service charge
In HO policies, what determines the amount an insurer will pay under Coverage D?
The amount of coverage on a dwelling.
How is coverage usually written for HO-8 forms?
For the market value of the property.
When would theft of property of guests and residence employees be covered under the HO-8 form?
Only while on the insured premises.
How many owner-occupied residences per covered home are allowed by the HO policies?
An HO policy may insure a property that has 1 to 4 family owner-occupied residences.
In order for forms HO-2, HO-3, and HO-5 to provide coverage, a dwelling must be insured for at least what percentage of replacement cost?
80%
What HO form covers a historic home with replacement cost more than the market value?
HO-8 (modified homeowners)
Which is the most limited HO coverage?
HO-8 (modified homeowners)
Losses caused by vandalism and malicious mischief are excluded from coverage is a dwelling has been vacant for how many days?
60 days
What are the 2 liability coverages included in Homeowners policy forms?
Coverage E - Personal Liability
Coverage F - Medical Payments To Others
What are the major coverages included in a HO policy?
Coverage A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property
Coverage D - Loss of Use
How are dwelling and other structures covered in an HO-3 policy form?
On an open-peril basis
What are the limits of theft coverage on an HO-8 form policy?
The ACV of what was stolen; however, additional limits may apply to certain classes of property.
What HO policy form is known as contents broad form?
HO-4 contents broad form
Why does the HO-4 form not provide dwelling coverage?
HO-4 is written for a tenant residing in a rented dwelling; the tenant does not own the dwelling.
