Ch 5 Homeowners Flashcards
Is a five family structure eligible for a HO policy?
No. Must have 4 or fewer units
What are the different homeowners forms?
HO2: Broad HO3: Special HO4: tenants broad form HO5: comprehensive form HO6: condo
Is 4 unit structure where one unit has 3 boarders eligible?
No limit is 2 per family.
John has a house down the cape where he spends one month each year. When he is not there there is no other resident. Would he qualify for a HO?
If property is seasonal must be occupied for three months.
John and Samantha each buy one unit of a duplex. Can they purchase a HO policy?
Yes.
Herbert is getting old. He transfers his home into a life trust. Is the home eligible for a HO3?
Yes. Life estates can have a policy.
Can a tenant take out a HO policy?
Yes. HO4
John has an interesting property. He has a trailer park and a farm. The mobile home and travel trailer owners want to write HO3 policies but cannot? John wants to insure the farm portion but cannot purchase an HO3. Why?
All are excluded.
What are the coverage parts of Section I of a HO policy?
A: dwelling
B: other structures
C: in scheduled personal property
D: Loss of use
Does a property that is rented to others covered under part A?
No.
How is the coverage among of Coverage B determined?
10% of A
What is specifically excluded from Part B?
Damage to a fence, pool, patio, foundation, outbuilding, bulkhead, retaining wall caused by weight of water, ice, sleet, snow, whether wind driven or not.
Property used for business.
Property rented except for garage.
What is the amount of coverage automatically provided by Part c?
50% of A
Who is covered under part c?
Insured
Household member
Child at college
Where is property covered under part c?
Anywhere in the world. If property is at secondary residence, coverage is 10% of c limit or $1000
Does coverage c cover property borrowed or used by an insured?
Yes.
Which perils are property covered against under part c?
Broad form: 1) fire/lightning 2) windstorm/hail 3) explosion 4) riot/civil commotion 5) aircraft 6) vehicles 7) smoke 8) theft (includes robbery & burglary) 9) vandalism 10) falling objects 11) weight of snow, ice, sleet 12) accidental discharge or overflow 13) sudden and accidental tearing apart, cracking, burning or bulging. 14) freezing of plumbing/heating (if reasonable care used) 15) sudden or accidental damage from artificially generated electrical current 16) volcanic eruption. All but HO5 have this form
What is the sublimit for money?
$200
What is the sublimit for securities, tickets, passports & stamps?
$1,500
What is the sublimit for watercraft and accessories?
$1,500
What is the sublimit for theft loss of jewelry, watches, and furs?
$1,500
What is the sublimit for theft of firearms?
$2,500
What is the sublimit for theft of silverware?
$2,500
What is the sublimit for business property ON PREMISES?
$2,500
The insured’s fur coat is missing. She thinks she heard a sound overnight so she reports that she was burglarized. Police find no evidence of burglary. Is the loss covered as a burglary?
No. No signs of forcible entry.
The policy will not cover a theft loss:
1) committed by the insured
2) of materials stolen at site of dwelling under construction.
3) that occurs off the residence premises of trailers, campers, watercraft+equipment or PERSONAL PROPERTY AT A SWCONDARY RWSIDENCE
Uncle bills NH ski vacation home is burglarized while he is in MA for the summer. Is there coverage under his primary home’s policy?
No. Theft is only covers while temporarily living in the secondary.
Juan is down the Vineyard at his vacation home. His HO policy at his Weston residence has part A $2 million. He incurs a a covered Part C theft loss of $175,000. How much coverage is available? If he were at his primary residence, what would be covered?
Part C limit is 50% of Part A: 2MM/2 = $1MM. There is a sublimit of 10% for property usually located at a residence other than the primary = $100k if on premises. No coverage got theft of property if off premises. Other perils are covered if away.
Is a hobby or model aircraft covered under C.
Yes.
What is not covered under part C?
Motorized vehicles Hovercraft Aircraft RVs Animals / pets Business data Property belonging by unrelated tenant Property that is regularly rented to others
Is car stereo covered under part C?
No.
Where is a ride on mower covered under Part C?
Only on premises.
How is the coverage limit of Coverage D (loss of use) set?
30% of A. (HO2, 3, 5)
Limits vary on HO4 or HO6.
Can insured increase coverage D by endorsement?
Yes.
The neighbors house burns down in a fire. Investigators tell the neighbor (insured) he must vacate the premises. Would there be loss of use coverage?
Yes. Up to two weeks.
Which additional coverages does a HO provide?
1) debris removal
2) reasonable repairs
3) trees, shrubs, plants
4) fire dept. service charges
5) property removed
6) credit card, fund transfer, forgery
7) loss assessment
8) collapse
9) glass or safety glazing material
10) landlord furnishings
11) ordinance or law
12) grave markers
The insured has $200k coverage for A. Covered peril causes a $60k loss. Cost to remove debris is $5k.will both be covered?
Yes. The combination of both falls within coverage limit.
Insured has a $200k coverage A limit. Has a total loss. Debris removal cost is $9k. Would removal be covered?
Yes. 5% additional coverage is provided. Policy would cover up to $10k
If a tree must be removed due to windstorm, hail, weight of ice, sleet, snow, is there coverage and it did not damage the structure or block the driveway, or block passage for disabled person?If so, how much?
Not covered unless it damages structure, blocks driveway, or impedes disabled. Up to $500/tree / $1000 max
If a neighbors tree falls and hits insured’s structure or blocks it, how much is paid?
$500/tree / $1000 max
