Chapter 5 Homeowners Policy Flashcards
All homeowners forms with the exception of WHAT TWO require named insured to be the owner-occupant of the insured dwelling???
contents broad form (HO-4) and Unit-owners FOrm (HO-6)
For who is the HO-4 Contents Broad Form designed?
tenants of a residential unit and provides NO COVERAGE for buildlings and other structures
For whom is the HO-6 Unit-owners Form designed?
owners of condominium and cooperative units. Coverage is provided for buildling an dpersonal property. other structures coverage included in coverage A-dwelilng
HO-2 Broad Form insures WHAT
the dwelling and other structuers for the 16 named persil and losses.
Whats valuation based on for HO-2 Broad FOrm?
Replacement cost basis
HO-2, -3, -4, -6, -8 insure what for what and what valuation
insure personal property for 16 named perils and losses are valued on ACTUAL CASH value asis
What does HO-3 SPECIAL FORM insure?
insure dwelling and other structures on an open perils basis and losses are valued on a REPLACEMENT cost basis
What does an open perils policy insure??
covered property for all perils that are not specifically excluded under the policy
What does the HO-5 Comprenesive form insure?
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
When is the HO-8 Modified Coverage Form used?
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
Full-time students insured?
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
what is a residence employee?
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
What is the residence premises?
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
To what does deductible apply?
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
Insurer requires named insured to purchase insurance in what amount?
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
Whats teh automatic limit of insurance for coverage B- Other structures?
10% of the Coverage A limit of insurance
Coverage B other structures does not proivde insurance for WHAT
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
What is the automatic limit of insurance for Coverage C-Personal property?
50% of the limit for Coverage A
Coverage C-Personal property applies to WHAT
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$
To what do special limits of liability apply?
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
What types of property are not covered under CoverageC- personal poperty?
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
If property loss makes residence premises unfit to live, what does Coverage D- Loss of Use pay for?
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
What does Section I- Additional Coverages (HO) include?
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
What is the limit of insurance for Credit Cards, Electronic Fund Transfer Card, Forgery and Counterfeit MOney?
$500
