Chapter 5 Homeowners Policy

Question 1

All homeowners forms with the exception of WHAT TWO require named insured to be the owner-occupant of the insured dwelling???

Answer 1

contents broad form (HO-4) and Unit-owners FOrm (HO-6)

Question 2

For who is the HO-4 Contents Broad Form designed?

Answer 2

tenants of a residential unit and provides NO COVERAGE for buildlings and other structures

Question 3

For whom is the HO-6 Unit-owners Form designed?

Answer 3

owners of condominium and cooperative units. Coverage is provided for buildling an dpersonal property. other structures coverage included in coverage A-dwelilng

Question 4

HO-2 Broad Form insures WHAT

Answer 4

the dwelling and other structuers for the 16 named persil and losses.

Question 5

Whats valuation based on for HO-2 Broad FOrm?

Answer 5

Replacement cost basis

Question 6

HO-2, -3, -4, -6, -8 insure what for what and what valuation

Answer 6

insure personal property for 16 named perils and losses are valued on ACTUAL CASH value asis

Question 7

What does HO-3 SPECIAL FORM insure?

Answer 7

insure dwelling and other structures on an open perils basis and losses are valued on a REPLACEMENT cost basis

Question 8

What does an open perils policy insure??

Answer 8

covered property for all perils that are not specifically excluded under the policy

Question 9

What does the HO-5 Comprenesive form insure?

Answer 9

dwelling, other structures, pesronal poperty on an open perils basis. Loss valuation for DWELLING AND OTHER STRUCTURES is on a REPLACEMENT COST BASIS and loss valuation for PERSONAL PROPERTY is on an ACTUAL CASH VALUE BASIS

Question 10

When is the HO-8 Modified Coverage Form used?

Answer 10

Used when insuring older homes where replacement values and market value are disproportionate or when a moral hazard would be created in insurance were written in an amount equal to 100% of a dwelling’s replacement value

Question 11

Full-time students insured?

Answer 11

living away at college if they are under age 24 and were a resident of household before moved away . full time students under age 21 and in the care of the named insured or a resident relative also defined as insured

Question 12

what is a residence employee?

Answer 12

employ of an insured or an employee leased under agreement to the insured, and whose duties are related to maintenace or use of the residence premises

Question 13

What is the residence premises?

Answer 13

A one family dwelling where the named insured resides! or a 1,2,3,4 family dwelling in which named insured resides in at least one of the units

Question 14

To what does deductible apply?

Answer 14

Applies to all losses unless otherwise noted in policy and insurance company will only pay that part of the total of all loss payable under Section I that exceeds the deductible designated n the declarations page up to the policy limits

Question 15

Insurer requires named insured to purchase insurance in what amount?

Answer 15

Amount that is no less than 80% of teh dwellig’s replacement value. penalty applied to partial losses if at teh tiem of loss amount of insurance is less than 80% of the dwelling’s replacement value

Question 16

Whats teh automatic limit of insurance for coverage B- Other structures?

Answer 16

10% of the Coverage A limit of insurance

Question 17

Coverage B other structures does not proivde insurance for WHAT

Answer 17

other sturctures that are rented or held for rental to anyone who isn’t a tenant of the dwelling, from which business is conducted or in which business personal property is stored

Question 18

What is the automatic limit of insurance for Coverage C-Personal property?

Answer 18

50% of the limit for Coverage A

Question 19

Coverage C-Personal property applies to WHAT

Answer 19

Personal poperty owned or used by an insured while it is ANYWHERE IN THE WORLD. If it is usually located at a residence other than residence premises, coverage is limited to 10% of Coverage C or 1,000$

Question 20

To what do special limits of liability apply?

Answer 20

certain catebories of personal property under Coverage C: money, securities, watercraft, trailers, loss by theft jewelry, loss by theft of firearms, loss by theft of silverware, business property and electronic apparatus

Question 21

What types of property are not covered under CoverageC- personal poperty?

Answer 21

property insured elsewhere, animals, birds, fish, motor vehicles, aircraft, hovercraft, property or roomers and boarders, property located in apartments rented to others, business data, credit cards and electronic fund transfer cards and water or steam

Question 22

If property loss makes residence premises unfit to live, what does Coverage D- Loss of Use pay for?

Answer 22

necessary increase in living expenses required by the named insured to maintain the household’s normal standard of living. Coverage is also provided for the fair rental value of portion of the dwelling rented to others and in the event a civil authority prevents the use of residence premises

Question 23

What does Section I- Additional Coverages (HO) include?

Answer 23

debris removal, reasonable repairs, trees shrubs and plants, fire dept service charge, property removed, credit card, forgery, counterfeit money, loss assessment, collapse and glass or safety glazing material

Question 24

What is the limit of insurance for Credit Cards, Electronic Fund Transfer Card, Forgery and Counterfeit MOney?

Answer 24

$500

Question 25

How much does Loss Assessment coverage provide?

Answer 25

up to $1000 for loss assessment charged against an insured as the owner or tenant of the residence premises by an association or copr of property owners for direct damage to property collectively owned by all members

Question 26

What does Glass or Safety Glazing Material covers?

Answer 26

direct damage to property as well as damage caused solely by broken pieces of such glazing material or glass

Question 27

Landlord’s Furnishings provide up to how much coverage?

Answer 27

$2500 coverage! on a named perils basis, for appliances, carpeting, household furnishings owned by the insured and located in each apartment rented to others on the residence premises. Coverage for peril of theft is NOT provided

Question 28

Insured may use up to what percentage of Coverage A limit of liability for increased costs incured by insured due to the enforcement of any ordinance or law that requires or regulates construction, demolition, remodeling buildling damaged by insured peril

Answer 28

10%

Question 29

What do Section I exclusions include?

Answer 29

ordinance or law, earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss and governmental action

Question 30

Selected Section I endorsements include what???

Answer 30

mobile home, increased limit- other structures on residence premises, water back up and sump discharge, scheduled personal property, personal property, personal property replacement cost loss settlement

Question 31

Section II liability coverages LANGUAGE

Answer 31

Language is the same in all homeowners coverage forms and provides coverage for personal liability and medical payments to others

Question 32

Under Coverage E- Personal Liability insurance is provided for???

Answer 32

claims made and suits brought against an insured because of bodily injury or property damage caused for an occurrence to which the insurance applies. policy pays up to limit of liability for damages for which an insured is legally liable, including prejudgement interest awarded against an insured

Question 33

Coverage F-Medical Payments to others pays for??

Answer 33

necessary medical expenses incurred within 3 years from the date of an accident causing bodily injury without regard to fault. Coverage provided for injury to a person on insured location with permission or off the insured location if the injury is caused by insured or residence employee int eh course of employment or by an animal owned by or in the case of an insured

Question 34

Section II - additional coverages include ??

Answer 34

Claim expenses, first Aid expenses, damage to property of others and loss assessment

Question 35

Is motor vehicle liability included?

Answer 35

No! excluded under Section II, including coverages E and F and the Additional Coverages

Question 36

Coverage E exclusions??

Answer 36

loss assessments, damage to property owned by an insured; damage to property in the insured’s care, custody, or control; injury to anyone eligible to receive worker’s compensation and similar benefits; injury and damage convered by a nuclear energy liability policy and bodily injury to an insured

Question 37

Coverage F exclusions?

Answer 37

bodily injury to residence empoloyee when not working and away from insured location; anyone eligible to receive worker’s compensation and similar benefits covered by nuclear energy liability policy; to a resident of the insured location

Question 38

SEction II COnditions include?

Answer 38

LImit of liability, severability of insurance, duties after occurence, duties of an injured person under Coverage F, payment of claim under coverage F, legal action against insurer, other insurance, policy period and concealment or fraud

Question 39

Selected homewners endorsements that provide Section II coverage include?

Answer 39

Home Day Care, Personal Injury, Home Business and Watercraft Liability