CH10 - Homeowners Broad and Comprehensive Forms

Question 1

What is the definition of vacant?

Answer 1

Vacant applies where, regardless of the presence of furnishings:

• all occupants have moved out with no intention to return, and no new occupants have taken up residence
• in the case of a newly constructed house, no occupant has yet taken up residence

Question 2

What is the Wear and Tear exclusion and what is its purpose?

Answer 2

This excludes loss due to wear and tear, deterioration, defect, or mechanical breakdown. Its purpose is to avoid disputes about what a risk is, since these causes are not unexpected events but inevitable or inherent in the objects concerned.

Question 3

What are the Specified Perils?

Answer 3

• fire
• lightning
• explosion
• smoke due to a sudden, unusual, and fault operation of any heating or cooking unit in or on the premises
• falling object that strikes the exterior of the building
• impact by aircraft or land vehicle
• riot
• vandalism or malicious acts, not including theft
• water damage
• windstorm or hail
• transportation

Question 4

What are the differences in the Homeowners Comprehensive Form?

Answer 4

1) The order of the two groups of the Special Limits are reversed.
2) The five Special Limits for theft losses in the Basic and Broad form specify that those same Special Limits do not apply to loss or damage caused by a Specified Peril in the Comprehensive Form.
3) Watercraft is limited to Specified Perils and Theft or Attempted Theft, which is the same as Basic and Broad.

Question 5

What are the exceptions under the Scratching, Abrasion, Chipping, or Breakage Exclusion?

Answer 5

Loss or damage caused by scratching, abrasion, or chipping of personal property of breakage of fragile or brittle articles is excluded unless loss is caused by:

• a Specified Peril
• accident to a land vehicle, watercraft, or aircraft
• theft or attempted theft

Question 6

What are the eight Special Limits that apply to loss or damage caused by any insured peril?

Answer 6

• business property
• securities
• personal property used by an insured student
• money, including cash cards, or bullion
• garden-type tractors
• watercraft
• computer software
• spare automobile parts