Ch. 4 - Homeowners Policy FLASH CARDS

Question 1

In general, what do Homeowners policies cover?

Answer 1

Dwellings used primarily as private residences

Question 2

What type of coverage is included in HO policies, but is not available in DP?

Answer 2

Liability coverage

Question 3

What HO form covers condominium unit owners?

Answer 3

HO-6 (condo unit owners)

Question 4

What coverage forms are available in HO policies?

Answer 4

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

Question 5

When replacement coverage cost is not reasonable, what type of HO coverage is applicable?

Answer 5

HO-8 modified HO form is intended for use when the replacement cost coverage is not practical.

Question 6

What HO form insurers tenant living in an apartment?

Answer 6

HO-4 (tenant broad form)

Question 7

What is mysterious disappearance?

Answer 7

Misplacement or loss of property without knowledge as to what the location, time, and cause of the loss.

Question 8

What does form HO-5 cover?

Answer 8

Dwelling/other structures, as well as contents and personal property.

Question 9

Under Coverage C of an HO-3 policy, what is the amount of insurance provided for personal property?

Answer 9

At least 50% of the Coverage A limit (this applies to all policies except for HO-4 and HO-6)

Question 10

In HO policies, which coverage provides protection against an indirect or consequential loss?

Answer 10

Coverage D - Loss of Use

Question 11

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?

Answer 11

30 days

Question 12

What HO policy form is known as a special form?

Answer 12

HO-3 special form

Question 13

When is an appraisal needed and how can it be requested?

Answer 13

If an insured and an insured disagree about the value of a property loss, either party can make a written demand for an appraisal.

Question 14

What are some of the exclusions from coverage in all the HO forms?

Answer 14

Land
Structures used for business purposes
Animals/fish/birds
Aircraft
Rented property
Electronic data
Motor vehicles

Question 15

What type of coverage is included in Section II of HO insurance?

Answer 15

Personal liability coverage

Question 16

What are additional coverages in HO policies without additional premiums? (name several)

Answer 16

Debris removal
Lawn/plants/shrubs/trees
Removal
Reasonable repairs
Fire department service charge

Question 17

In HO policies, what determines the amount an insurer will pay under Coverage D?

Answer 17

The amount of coverage on a dwelling.

Question 18

How is coverage usually written for HO-8 forms?

Answer 18

For the market value of the property.

Question 19

When would theft of property of guests and residence employees be covered under the HO-8 form?

Answer 19

Only while on the insured premises.

Question 20

How many owner-occupied residences per covered home are allowed by the HO policies?

Answer 20

An HO policy may insure a property that has 1 to 4 family owner-occupied residences.

Question 21

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?

Answer 21

80%

Question 22

What HO form covers a historic home with replacement cost more than the market value?

Answer 22

HO-8 (modified homeowners)

Question 23

Which is the most limited HO coverage?

Answer 23

HO-8 (modified homeowners)

Question 24

Losses caused by vandalism and malicious mischief are excluded from coverage is a dwelling has been vacant for how many days?

Answer 24

60 days

Question 25

What are the 2 liability coverages included in Homeowners policy forms?

Answer 25

Coverage E - Personal Liability

Coverage F - Medical Payments To Others

Question 26

What are the major coverages included in a HO policy?

Answer 26

Coverage A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property
Coverage D - Loss of Use

Question 27

How are dwelling and other structures covered in an HO-3 policy form?

Answer 27

On an open-peril basis

Question 28

What are the limits of theft coverage on an HO-8 form policy?

Answer 28

The ACV of what was stolen; however, additional limits may apply to certain classes of property.

Question 29

What HO policy form is known as contents broad form?

Answer 29

HO-4 contents broad form

Question 30

Why does the HO-4 form not provide dwelling coverage?

Answer 30

HO-4 is written for a tenant residing in a rented dwelling; the tenant does not own the dwelling.